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You might want to look into diversifying your short-term cash holdings into other currencies to hedge the falling dollar.

Contrary to popular opinion, the falling dollar won't necessarily cause high levels of domestic inflation.

Lately, my wife and I have been discussing the idea of continuing to rent a primary home here close to town but purchasing a vacation cabin a few hours from here.

"Dollar declines to new low". This statement could be applied against any number of currencies as the US dollar or Greenback keeps trending lower. The dollar declined to $1.6038 per euro, the lowest since the Euro's inception in 1999. It fell to 104.97 yen, from 106.14 yen yesterday. The U.S. dollar also declined to a 25-year low against the resource driven and higher yielding Australian and Canadian dollars. The Dollar Index, which tracks the greenback against the currencies of six U.S. trading partners, fell for a fifth day on the ICE market to 71.334, the lowest since April 23. In my previous US dollar update there were signs that the dollar was recovering, but alas it was a false dawn. Here are the main reasons why the US dollar is and will continue to decline in the near term:

Despite global economic woes, one positive aspect for main street America has been the relatively rapid rise of the US dollar in the last 3 months. The dollar index (DXY), a measure of the greenback against a trade-weighted basket of six major currencies, has strengthened by over 20% in this time. However, the question is will this trend continue? To answer this, one must look at the current factors driving the US dollar.

It's the classic sign of a sagging economy: inflation falling fast as the cost of goods and services shrinks under the weight of falling demand and rising unemployment.

Due to a combination of rising oil prices and the falling dollar, you will probably start seeing a lot more "Made In America" labels in the future.

Of late, the US dollar seems to be perking up. But, is this a long lasting trend or is it just because the US economy seems to be getting back on track, while the economic malaise is spreading to the other parts of the world and pulling down economies like Europe and Japan. The truth seems to be the latter case.

Oil prices fell Monday as investors carried on last week's tradition of falling prices leading up to the Christmas holiday, and the dollar earned back early losses against the euro.