There is wide swinging of World currencies, would some experts shed light on that I guess
Oil is less than 1/2 in only few months,
American deficit is 10%. One of the highest in at least 20 ys
Inspite of this all All major currencies has been falling falling against Dollar, Australia's [which I guess had Zero Deficit in recent years] Currency is about 30% Low vs Dollar, I feel there is big gambling mafia Like a "Back hole", Which is getting benefit of peple emotions after American Election and in within 3,4 months they will put Dollar upside Down.
Pardesi, Jeddah replied on Saturday, November 8, 2008 09:54 AM
Increase in US$ because of less global disposable income forcing to maintain both ends meet while bulk of international trade is on US$ thus US$ is in demand.
A plus point: US is the largest market of Chinese items, on the contarary US has alot of investment in China. On the current account China is gaining from higher US$ on its exports while US investment is earning higher yields -balancing its deficit from imports.
Still, the analysts insist that the drift in global confidence, especially banks are not accepting LCs of certain other banks, general recession, ever increasing loans, war charges, high costs of production and cheaper imports will force US$ to come down, gambling factor aside. |
