Trading the Weak Dollar Currency
Investors are encouraged to buy higher-yielding assets on speculation that global economic recovery is accumulating strength. Due to this the dollar traded within 0.5 cent of one-year low against euro. Also, dollar currency trades weak versus the yen and kiwi dollar climbed high.
The Dollar Index which tracks the performance of the dollar against other currencies dropped as low as 75.892 - the lowest so far.
As of 8:07 a.m. London time, the dollar traded $1.4793 per euro from $1.4790 yesterday in New York. This is the lowest level since 2008 (Sept. 22) which is $1.4842. On the other hand, the yen strengthened 134.51 per euro, coming from 134.76. But the U.S. currency is also weak versus the yen since economists forecast that Federal Reserve would try to keep benchmark interest rate in between zero and 0.25% today.
According to Lee Hardman, currency strategist at London-based Bank of Tokyo-Mitsubishi Ltd., “In the near term, the dollar would most likely remain weak. The things that are driving it lower are the liquidity conditions which are exceptionally loose, yet it would encourage its use as funding currency.” Currently, the U.S. currency dropped from 91.10 to 90.94 against the yen.
New Zealand dollar or kiwi climbed to its 13-month high for the first time in a span of six quarters after a government report showing the economy’s growth. It rose to a high of 73.12 U.S. cents, which is its strongest since 2008 (Aug. 4).
The 93 economists surveyed through Bloomberg said that Federal Reserve won’t change their interest rates at the end of their two-day meeting. Analysts said that Chairman Ben S. Bernanke together with his colleagues needs to discuss winding down the purchases of mortgage-backed securities.
Comment
Categories
- Franchise Opportunities
- Wholesale Business Opportunities
- Small Manufacturing Business
- Farming Business Ideas
- Unique Business Opportunities
- Shop Business Ideas
- Small Business Opportunities
- Startup Company Ideas
- Home Based Business Opportunity
- Rural Business Opportunities
- Tips for Buying and Selling
- Starting Rental Business
- Ideas for Small Business
- Free Business Ideas
- Internet Business Ideas
- Store Business Opportunities
- Entrepreneur Business Idea
- Retail Store Ideas
- Service Business Ideas
- Advice for Small Business
- Financing a Small Business
- Restaurant Business Opportunities
- Small Business Articles
- Business Marketing and Advertising
- Business News
- Repair Business Opportunity
- Professional Career Opportunities
- Business Insurance Information
- Instructor Guides
