New Year’s magic did not work for the U.S Dollar!!!

New Year is a year which brings in new challenges, new opportunities and above all New Hopes. So I was hopeful that this New Year will change the U.S dollar’s position by taking the U.S dollar up. But my hope didn’t work out. The U.S dollar again slithered. And as we all know that from past few days Euro is hitting the market, now also the Euro is ruling the world markets.

Yesterday Japanese markets were enjoying a holiday and the U.S financial markets were observing national mourning for their former president so the trading conditions were light. And it was expected that the foreign exchange market may not work well. But to everybody’s surprise the Foreign Exchange market made an explicit move. Both the currencies the Euro and the Sterling rose against the dollar though their manufacturing data showed that it was weaker than expected. The Euro and Sterling rose 0.6% & 0.7% respectively against the dollar.

In 2003 also, the dollar’s position was also weak. But by middle of 2004 it again made progress. So let's expect that by middle of 2007, the Dollar will make a way to progress