Any hope for the dollar?
Euro just a hit a record high against the USD - I'm afraid to travel. How can this administration shape up the dollar?
Answers
2172 points
ChaosNantuko answered one year ago …
The administration is between a rock and a hard place.
The economy is doing poorly, so to stimulate the economy, they must lower interest rates.
the dollar is doing poorly, so to stimulate the dollar, they must raise interest rates.
they can't really do both, and thats their big issue at the moment. I think they're more worried about the economy then a weak dollar, so i'd bet on continued lower interest rates, and a falling dollar. Remember that you could place a forex trade, going long euros and short the dollar to hedge the loss of value your currency is experiancing. You could also do it for the purposes of speculation, as it is likely the USD will continue falling.
3678 points
MNSL answered one year ago …
Yes I have 100% hope on the US Dollar in next 18 months.
Analysts have divided on US Dollar now. Majority bullish on the US Dollar now. If you carefully observe you will realize Dollar is slowly appreciating now. Actually, we see volatility now. Sooner than later Dollar will rebound in the 2nd half of this year.
Euro will depreciate against US Dollar soon. They are not going to increase interest rates further. Even countries like New Zealand, Australia their interest rates will reduce at the end of this year or next year.
In some points fed will increase interest rate to control inflation. At his juncture, they do not want to do this because of the credit and financial problems that we have now. However they will do this sooner than later.
