Dollar Index ? Where is the dollar heading?

[Sadoun]

According to investoppedia.com

What does "Dollar Index" mean? A measure of the value of the U.S. dollar relative to majority of its most significant trading partners. This index is similar to other trade-weighted indexes, which also use the exchange rates from the same major currencies.

Currently, this index is calculated by factoring in the exchange rates of six major world currencies: the euro, Japanese yen, Canadian dollar, British pound, Swedish krona and Swiss franc. This index started in 1973 with a base of 100 and is relative to this base. This means that a value of 80 would suggest that the U.S. dollar experienced a 20% decrease in value over the time period.

Here is a chart of the current dollar index
US Dollar Index


As of yesterday it closed at around 75.50 (and declining).

Is the decline in dollar value being reflected in the inflation rate? I say not quite proportional. But how long before inflation becomes a real problem?

Price of Gold is certainly rising as the dollar is falling

[teched]

Originally Posted by Sadoun

Is the decline in dollar value being reflected in the inflation rate?

Is there any "real time" inflation rate chart? All that data I've seen is weeks/months behind "real time".

Originally Posted by Sadoun

But how long before inflation becomes a real problem?

It depends on what you consider a "real problem".

As the USD loses value internationally the USD costs of imports will surely rise. Domestic products will likely have some price changes as everything has some sensitivity to international pricing (fuel, product demand.)

What impacts are you seeing in import/export trade with the changing international value of the USD?

Originally Posted by Sadoun

Price of Gold is certainly rising as the dollar is falling

The price of Gold in USD is rising as the value of the USD is falling in the eyes of the world. From the chart you inlined Gold has gone from about 700USD to 840USD (liberal approximation) an increase in USD cost of 20% in 4 months. The chart from Gold Euro Chart looks like Gold has gone from about 500EUR to 570EUR, about 14%, in the same 4 months.
. I don't know what, if anything, in the mining, refining or usage of gold, has caused an ounce of gold to be more or less valuable than an ounce of gold.