As for the WHY the Dollar continues to slide.The dollar fell to a fresh three-year low on Wednesday and the euro briefly rose above $1.49 as weaker-than-expected U.S. employment data convinced investors that U.S. interest rates would remain low this year.
The yen also hit a six-week high against the dollar after data showed the pace of growth in the dominant U.S. services sector also slowed unexpectedly in April, another sign the U.S. economy may be hitting a soft patch.
In case you are wondering "Federal Reserve printing lots of dollars (increase the supply, decrease the price) in its effort to resuscitate U.S. economic growth"is what Quantitative Easing is. (Long time readers may remember that I pointed this all out to last month)The decline is no surprise: It's the anticipated result of the Federal Reserve printing lots of dollars (increase the supply, decrease the price) in its effort to resuscitate U.S. economic growth. And, because money flows toward higher yields, it's the inevitable result of the European Central Bank's eagerness to raise interest rates faster than the Fed.
I pointed out yesterday that the USD/JPY exchange rate is a key dynamic to the anime industry in both the U.S. and Japan. (Read Robotech Art 3 for a great example of what I'm taking about) If the dollar continues to fall and the Yen strengthens it makes anime more expensive (the shows themselves or their merchandising) to acquire for both companies and consumers.
Furthermore, as the dollar weakens it forces upward pressure on oil prices which adds to the cost of manufacturing goods. That includes anime merchandise (check out what most anime merchandise is made of/from). Also, the weakening dollar forces gas prices to go up and that robs consumers in general and anime fans in particular of thier purchasing power.