The dollar is clawing its way out of the near record low slump that it has suffered over the last couple of months. All the effort that the federal government has put into solving the mortgage crisis (not to mention all the cash) has helped to restore investors confidence in the industry (and in the mortgage giants Fannie Mae and Freddie Mac). The result has been a rise in the value of the dollar.



Investors are happy with the plan that has been implemented by the federal government but some worry that it is not enough. The dollar is gaining, but not like some would prefer - especially those looking to travel overseas or that do business with the European market.

The seizure of IndyMac Bancorp on Friday by the federal government did not help to improve investor's opinions of the lending market. The .1 percent rise that the dollar saw would probably have been a bit higher otherwise. Having an unstable mortgage industry is deeply hurting the value of the dollar.

The continued improvement of the dollar against the world market will depend largely on how the mortgage bailout pains out. If investors see a difference and their confidence rises then so will the dollar. Other wise the gains that the dollar has seen will likely be lost in the future.

Millions of Americans will spend their days not concerned about the value of the dollar around the world. Most people are unaware of how the conversion rates affect imports. It is mainly the people who do business with Europe (and often get paid in Euros or other monies) that keep a keen eye on the conversion rate. If the dollar continues to rise then the purchasing power continues to rise with it. This is especially beneficial to those still eager to travel abroad this season.