Having known that the U.S dollar has been experiencing some problems and not in a sound position but still the investors and traders were speculating that things will go right in place when it is concerned with the U.S dollar. As per the expectations the U.S dollar has been performing cautiously the past week and has risen the most in the earlier week. The strengthened dollar has been strong against the Yen and the Euro. It has been strong because there was a speculation that the Fed might cut the interest rates. As a result of the speculation the yen fell badly against the U.S dollar and the Euro too. This has encouraged the investors to buy high-yielding assets. But then The dollar has risen up to 1.2 percent level. The rebound rate of U.S D is 0.8 percent against the Japanese Yen. Just a talk that the Federal Reserve might cut the interest rates has made the Dollar to boost up again. Imagine how will be the U.S dollar’s position when Federal Reserve announces its interest rate cut in reality. I feel that the interest-rate cut by the FED might prove very productive to the U.S economy and the currency market as well.
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