Dollar goes up against Euro and pound but falls against Yen
Dollar puts in its best performance in more than three and a half years, as U.S dollar rose today against the Euro and Great Britain pound . The reason was the speculation that financial crisis in Euro zone will lead to long term U.S financial assets. The Euro fells below $1.43 first time since early September.
The overall improvement in the U.S economy has helped the dollar to grow in recent days. The U.S Federal Reserve has decided to cut down emergency lending and hopes for the U.S recovery. All these reasons helped the investors buying back the dollar and gaining the profit on core trades.
On the other hand there is concern for U.S as U.S currency dropped against the Japanese currency Yen due to unreliable assumption and reports on recovery of U.S economy .The Dollar drops down to 92.75 Yen in Tokyo from 93.21 in New York.
Nikkei newspaper report supported the Yen that the bank of Japan will think on revising its consumer prices forecast for the year from April 2011 from an annual drop of 0.2 percent to zero. Investors are buying Yen at the cheap rate causing the trouble for U.S dollar.
Some of the investors believe that the real reason for the rise of U.S dollar is not that dollar is strong but euro and sterling suddenly look more fragile than the greenback. The euro zone is going through recession and it will take hard to come out of it. Apart from it U.S is trying to improve its economic condition and putting their best efforts in making USD the best performing currency. But the current situation is not in favor of USD as it falls down today against EURO and this benefits the EURO. Since from past 24 hours the EURO is the best performing currency of the Forex online market. This is the good news for the investors whose sentiments are still with the EURO currency and hoping for the best of EURO.
