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Old Wed, 11-15-2006, 09:51 AM   #2 (permalink)
avio
 
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Smile Re:Dollar on path of crisis

Hey checked out the rest of the article on your blog, Ok yes it is true that the Foreign Exchange market is pretty indecisive and investors have to face lot of uncertainty and due to any or no announcements by the Federal Reserve has an effect on the US dollar which in turn effects lots of other world currencies. But also that the Dollar on it’s own cannot be blamed for such irregularities in the market because there are other factors like internal economic changes which add fuel to the increase or decrease in a currency, like the one happened yesterday with the Yen , when it weakened against the Dollar and the Euro after a Government report showed that the Japanese market had a greater than expected growth in the third quarter which will give Japanese investors more confidence to buy overseas assets.

There are other reasons like the interest rate change , in fact this is the first reason as to the fluctuations in the foreign currency market ....
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