Finance, Forex and Investments

What would a round of quantitative easing do to our exchange rate?

Everything else kept the same, if the Fed executes a round a of quantitative easing, what would happen to our exchange rate?

Public Comments

1. It decreases the value of the dollar by increasing the supply.
2. Do you mean even MORE quantitative easing (QE)? The last two rounds produced no jobs, but the dollar has gone from 75 cents to the loonie to $1.03 in the last couple years. However, that can make it easier to pay off our debt, which is denominated in dollars, because every dollar is counted the same. That can be a mite confusing but amounts to the same thing as when good ol' grampa bought his house for $10000 in 1960 and payed his mortgage off in 1978 when instead of making $4000 a year like he did in 1960, he made $40,000 a year. Inflation kicked in and let him pay off the mortgage painlessly. If we pay off our debt on time, that increases demand for the dollar and counterbalances some of the effect of monetary supply expansion.
3. It causes the dollar to depreciate against most of the currencies in the world,except Yuan and Indian Rupee.It has been depreciated in average 40% since 2008.