U.S Dollar is Skidding

The dollar suffered major slides on Thursday, due to poor business in U.S. The Euro continues to hit the list at the top and it again rose 0.7 percent against the dollar to $ 1.3247. The sterling, the pound, and the yen are also leading against the dollar. A report stated that inflation benchmark in U.S was held steady in October at 2.4% year to year. Data suggested further inflation-fighting interest rate rises which could support the dollar, were even less likely to be needed.

Since, U.S dollar is declining day by day; the factor of risk aversion in fellow traders is increasing rapidly. The risk of short-term dollar weakness may now be greatest against the yen.

In my opinion, eventually from the past 10 days, the U.S dollar is declining rapidly. Now the question is does U.S dollar gains its stability in future? The capricious markets know the answer better than we, the people.

Dollar in Dilemma ~~~~~~

In another capricious day on the currency markets, the U.S dollar has picked up its speed against the Euro since there was a aloft alteration in U.S economic growth. The official data showed that U.S GDP grew more than excepted. And this made the U.S dollar climb up 0.4 per cent to $1.3150 against the euro by mid-afternoon in New York, its first rise since six days.

But since the markets are unpredictable, the dollar again tumbled a fresh 20-month low of $1.3218 against the euro in Asian trade market. And this may continue for few more days.

U.S Dollar and Yen make the global markets feel uneasy.

U.S Dollar and Yen continue to make the way to declining stage. Yesterday the global markets were concerned about the fall of U.S. dollar and Yen. The Euro continued be the main beneficiary of the greenback’s vulnerability, rising to a fresh 20-month high against the dollar. The dollar later framed up from session lows but still appeared under pressure. The Euro also hit new all-time peak against the Yen.

Since from 4or 5 days, following its downfall the Dollar market is troubling every market globally. So also the U.S. treasuries market was affected. On equity markets, except the S&P 500 index was up by 0.1 per cent at midday , every other index was down.

The investors were also rethinking about investing since the dollar and yen are in real trouble. The stock markets were also hit by continued dollar concerns and FTSe is no exception.

Dollar’s Fall -Off Still Continues !!!!!!

U.S dollar is still continuing to be under real pressure. It continued to fall on Monday (27th Nov) too. Dollar continued to hit a 20-month low against the euro and a two-year low against the pound. The downfall initially continued where it left off last week, sliding heavily in Asian trade markets. This continuing decline in dollar is affecting many markets as well. The U.S. and European markets were also affected. In addition to that, the U.S. treasuries were also one of the major sufferers.

But on the other hand, the commodity market is rising sharply and especially gold is at top. A strategist from HSBC stated that since the dollar is declining, so also the U.S growth is also declining. But soon it will recover.

The European equity markets were hit hard by the fall-out of dollar value. The FTSE Euro first 300 tumbled 1.5 per cent to 1,429.00, its biggest one day drop since June. The weaker dollar made the fellow investors to re-think against the probability of loss.


In my opinion, though there is some sudden decline in U.S. dollar affecting many markets, but soon it will regain its position in the global markets.

Dollar under Genuine Pressure

On Friday 24^th Nov, 2006 the global markets were moved when they saw the U.S dollar in real pressure. The U.S dollar has again slipped from its price. Since the dollar declined, the fellow investors were trying to protect themselves from any possible loss.

The rate of dollar has fallen more in this year when compared with Euro and Sterling. An analyst from Citigroup stated hat the economic data will remain soft, but the dollar will continue to fall. Since, there is drastic decline in U.S dollar, the Asian foreign exchange reserves were at risk.

Sufferers from U.S dollar fall-out

Stock markets suffered when the U.S dollar had a spat with the exporters. And Equities markets in Europe and Asia also suffered.
But on the other side, the commodities market was tracked higher.

In my opinion the U.S dollar will gain its stability after some days. But for the present 3-4 days the dollar market in U.S will remain is it is now.

A Sudden Sink in Oil Prices in United States

The oil prices in United States have been slipping out of the blue for nearly two days. Since the oil prices subsided,, the commodities market was also affected. And this is for the first time that oil has reached such a declining point in 2006. The traders in United States feel that the price of oil may remain the same. But as far as my opinion is concerned I feel that the fluctuation in oil is of momentary nature and will surely regain its original place in coming hours. Crude oil maintains its demand and there is stability in crude oil’s supply.