The U.S. dollar touched its lowest level in more than a year versus most of its main rival currencies as speculations suggest that the Federal Reserve will maintain borrowing costs in a historic record low, as the economy still urges for stimulus to provide a more solid recovery.
Several reasons are impacting further the greenback’s outlook among traders in currency market, as risk appetite remains strong, favoring
The dollar forecast for 2010 tends to be rather negative, according to analysts, as the Federal Reserve has still not indicated that interest rates will be hiked anytime soon, fact which could add confidence and attract investors back to assets in the United States. To some extent, the U.S. government is being rather tolerant with its weakened currency, since they need to make their products more competitive to export markets, and consequently recover the economy in a faster pace.
EUR/USD traded at 1.5033 as of 15:15 GMT from a previous rate of 1.4973 yesterday. AUD/USD traded at 0.9317 from 0.9283.
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