Goldfish (Part 87355)

clipped from www.fundmasteryblog.com This chart shows that in 1972 it took over 2.5 dollars to buy one pound. The dollar then strengthened versus the pound and this process ended in 1985 when it took only $1.10 to buy a pound. Since 1985, the pound has generally strengthened versus the dollar. That is, for the past 23 years the dollar has generally fallen versus the pound. Yet, even at the recent peak of strength for the pound — October 2007 — the pound has still not made it back to the high point it reached versus the dollar back in 1972. In short, major currencies fluctuate against each other daily, but the overall trends cover very long periods of time. If you look at the dollar/pound comparison over a shorter period, then you see the dollar is weakening. But, if you look over the longer period shown in the chart, then you see the pound on a long-term downward trend versus the dollar.