Tag: us dollar

Since May 2009, there has been a steady fall in euro level; it’s being traded as low as 133.01. The sovereign debt of Portugal has downgraded from AA to AA- by most rating firms. New weaknesses for eurozone currencies are emerging every day and the Greek crisis still seems subtle. The Swedish Krona, the Swiss Franc, and the British Pound are all traded down one percent. Not only the eurozone, many economies in Europe are gradually flowing out since early Dec 2009. This, however, has helped US dollar and US stock to gain value. The surge in stock value since Mar 2009 can be categorized under two different phases; this, however, wouldn’t be visible by glancing through charts as it’s closely connected to variation in currency rates. Between Mar and Dec 2009, US stock’s value augmented radically, a trend observed since early 2000s. And it perfectly makes sense. When a currency depreciates,  [...]

Finally some good news for US dollar. After hitting 25-month low on Monday the dollar rebounded on Tuesday and registered an increase against major currencies. However the currency still remains weak as investors expect interest rates to remain low. The dollar index which measures dollar’s performance against six major currencies increased by 0.2% to 75.18 midway through the trading day. On Monday the index had fallen to a low of 74.93 which was also its weakest level since August 2008. Tuesday’s gain in dollar was expected as investors felt that the Monday’s fall in the currency was too much and too fast without any fundamental reason. Analysts also are of the opinion that the investors don’t have any reason to sell dollar any further after its recent falls. Dollar gained maximum against Sterling on Tuesday. Sterling lost ground on Tuesday after Fitch commented that among the  [...]