In the recent economic crisis, global investors fled to the safety and solidity of the U.S. dollar, pushing it up in value after a steady downward trend. As the global economy begins to strengthen, the dollar is once again losing altitude. And all signs point to yet further weakness, perhaps by a significant amount. And that’s why you need to be prepared… A perfect storm The dollar is being buffeted by a range of factors, led by expectations that European interest rates are bound to start rising before the U.S. Read More
In the recent economic crisis, global investors fled to the safety and solidity of the U.S. dollar, pushing it up in value after a steady downward trend. As the global economy begins to strengthen, the dollar is once again losing altitude. And all signs point to yet further weakness, perhaps by a significant amount. And that’s why you need to be prepared… A perfect storm The dollar is being buffeted by a range of factors, led by expectations that European interest rates are bound to start rising before the U.S. Federal Reserve hikes rates. European Central Bank head, Jean-Claude Trichet, said on March 3 that interest rates may increase in April for the first time in 23 months. The euro now stands at $1.40 to the dollar, up from $1.30 in early January. The Japanese yen, Australian dollar and Swiss franc are also rising in value against the dollar. In times of crisis, such as is occurring in the Middle East and North Africa, the dollar has tended to strengthen as investors take a “… Read More