The congress of USA contributes to falling the Dollar

The legislation function of the Unites States entirely depends on the House of Congress. Business experts blame the recent fall of the dollar to the House of Representatives. What does this mean to the economy of the US as well as international markets? The international markets benefit by a fall in the dollar since they will now get the US products at rather cheaper prices, conversely, the US will sell their products at cheaper prices which have a decrease in revenue which affects the US economy. What are some of the mistakes in the legislation house that affect the dollar rate?

Refusal to approve crucial annual budgets

The legislatures took time to approve the budgets which they feel jeopardizes the South Americas who also form part of the House. In fact, the building of the wall of Mexico as an order by President Donald Trump causes uproar among the South Americans. The effect of this is sabotage by low supply of some of the commodities from the South like Coffee and in turn reduced supply of tech equipment which further leads to poor business transaction between the two continents reducing the amount of money circulation which helps to maintain the value of the dollar.


The United States politics is majorly between the Democrats and the Republicans. Republicans feel the last regime of President Barack Obama had failed policies and it is now time to make a change. Racism took center stage making passing of most of the major bills in the house an uphill task because they also need the democrat vote for the bills to go into law. Some of the major bills are crucial. Investors shy away awaiting stability of the economy under the government. Business analysts admit it has an effect on the fall of the dollar since most of the treasury bonds which control the value of the dollar experience low sales.

Change of leadership

The US experiences a recent change in leadership from the democrats to the Republicans. The leading party has 49% of representation meaning they need the democrats in votes to pass bills into law. The most affected are the business laws to govern international businesses. No enterprise want to invest where there is uncertainty of the state of the law, in turn they seek alternative business relations adopting a wait-and-see policy that means low revenue.

Controversial policies

The current US leadership faces a lot of criticism by the public and the US congress even among representatives aligned to the Republican Party. Some of the controversial bills include terrorism, healthcare bill, forced migration and the fight against drugs common in South America. The countries affected serve as the market for US products. These bills take long in the US congress meaning there is a decrease in the number of business transactions in the communities.

Government appointments

Some of the businesses thrive because of the current leadership. The high-profile appointments require approval of the senate. The improbability of the policies of some of the new appointees make businesses to shy away in a bid to be sure if they will maintain the status quo in business; with this they fear any new business strategies which affect the US economy.

The fall of the dollar is mostly blamed on delay in releasing funds, sabotage by the opposition-allied representatives and politics because of the change in leadership.
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Weekly market overview May 13 - 17.
Weekly market overview May 13 - 17.
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