Hello Do you think the US dollars will go further weakened against other currencies like Euro, Rupee or would it remain constant in 2008 ? Indians = What do you think will the rupee appreciate further in 2008, if yes how far can it go ? Thanks gopalan
I think the dollar fell a lot over the last couple years, the economies of other countries are also weakening which means they'll have to cut interest rates also. I would suspect that the dollar holds steady this year. If it falls it won't fall a lot and if it rises it won't rise a lot either. Its already starting to rise against the Pound and the Canadian Dollar.
The dollar seems to be making some kind of fightback against the pound, and I like that because one of my websites takes payments in dollars. It has gone from 2.10 to the pound to around 1.95 to the pound in the last 2 months. But the US dollar is all over the place at the moment so it is anyones guess what it will do throughout the year.
It really depends on how bad the shake out from the mortgage mess is and how it effects our economy and how it effects other economies around the world and how they'll respond to a weak economy. There is a lot of factor they play into the currency markets.
Interest rates have an important impact on the value of the dollar. As a rule of thumb, higher FED rate means a higher valued dollar.
Yeap, but they keep lowering the rates to avoid recession, and by doing that we are going to end up with stagflation. They are stuck between a rock and a hard place.