Posted by forex at 4:31 AM
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1. Create good news. Speculation alone can get investors around the world to be interested in buying U.S. currency, which would increase the value of the dollar. Speculation can be about positive employment numbers, positive weather conditions or a change in oil prices.
2. Increase interest rates. An increase in interest rates means more profit for investors.
3. Decrease public debt. Borrowing risk goes down, confidence rises and so does the dollar.
4. Lower gas prices. This leaves more money in the pockets of consumers, allowing them to spend it in other sectors, such as investing or housing, which stimulates the economy, thus raising the value of the dollar.
5. Decrease the supply of money. The more dollar bills that are printed, the less valuable they become. Less bills means more demand and an increase in the value of the dollar.