Talk on USD

Just a Talk and USD is down against Euro. The talk that Federal Reserve would be cutting the interest rate added woes to the dollar. The U.S.D is down against the euro which has been trading about two U.S. cents off and indicating its all-time high. The U.S debacle session is still continuing because there is a slump in the housing market in United States.

The home sales have decreased steeply than anticipated. Adding to woes, the anticipation by the National Association of Realtors in U.S expect that the home-sales may be 10.8 percent below than last year. Forecast estimated that there is some 1.3% drop in the existing home sales, a slight improvement, but overall the housing market is still in slump mood.

but there is something good too.... On the other hand the Yen which is back into carry trade fashion has become an advantage to the U.S currency market. The dollar which rose very slightly purchased Yen at 117.29.

But the USD is in an unhealthy condition against the Euro and even against INR too. Indian Currency is becoming strong against the dollar. The current rate of 1 USD = 39 INR. Previously it used to be 45 INR.

I think the one solution where USD can be back in action is only when the housing market is again in boom.

Lets hope something best for USD.

Constant Worry Pick up’s Again on US Dollar

The US dollar is somewhat in bad condition. The dollar touched a new record low (1.4160) against the euro and sold off more than a cent against the Australian and New Zealand dollars. Given that consumer spending accounts for two-thirds of US economic activity, it is likely excepted by the excerpts that the US economy will continue to falter over the next 12 to 18 months as consumers retrench and rebuild personal wealth through investments and paying off debt rather than spending.

The markets are focused on the weakness in the US and what this means is that the US economy may be in rapid drop. The weak data from last week of September ‘07, and a 4.9% decline in August ’07, it is anticipated that the Federal Reserve will lower interest rates again in October, and as long as US interest rates are expected to fall further, relative to interest rates elsewhere, the US dollar will continue to fall.