The year 2008 was bad, to put it mildly, in terms of recession and economic downturn/ slowdown in the United States of America. It was no different in the year 2009, perhaps even worse, it seemed as if the economy of the US was in a free fall. It is therefore not at all surprising that US dollar lost lots of its sheen and hence its value. To rouse the economy of the country the Government went ahead with another cut in the interest rates of the Federal Reserve. It was or rather is a misconception that these stimulus packages offered by the Government to bail out the economy will further plunge the value of US dollar.
It is not surprising to predict that the year 2010 will see the US dollar making a very strong recovery as compared to its counterparts (other strong currencies). We have started seeing the US dollar making a recovery in the past fifteen to twenty days and the year ahead seems to bring a lot cheer to those who have kept their cool and held on to the US dollar. It is also not astonishing and surprising to note that the last two quarterly results have been on the positive side and this has given the fillip, which was required for the US dollar to bounce back.
The positive sentiment of the recovery of the US dollar can be seen in the international currency market if you take a closer look at the figures and charts (international currency rates and charts). US dollar against European Euro, US dollar against Japanese Yen, US dollar against Australian dollar and US dollar against UK’s pound, etc. are all showing a positive tilt in favor of the US dollar. All you have to do is take a closer look at the increasing strength of the US dollar against most of the other strong currencies of the world.
A fair bit can be interpreted through the following figures: US dollar in comparison to the Japanese yen, as on date is 90.840 (bidding price) / 90.850 (asking price) and that of the Australian dollar in comparison to the US dollar is 0.8862 (bidding price) / 0.8866 (asking price). These two examples clearly show that the dollar is steadily gaining ground and the year 2010 will see a strong US dollar once again.
Related posts:
- The euro has made strong gains against the dollar, buoyed by a rise in risk and pressure on the US currency
- A strong kiwi dollar shrugged off weak data from the US to post gains against sterling on Friday
- Strong commodity prices and doubts over the UK economy allow the aussie to gain further ground
- Sterling is making strong headway against a weakened dollar, advancing towards 1.62
- Canadian Dollar Remains Strong on Commodities
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