In the United States we have a floating currency. The government cannot raise or lower the US Dollar exchange rate directly. It cannot raise or lower the conversion rate by decree, for example, by declaring that “As of noon tomorrow, all US banks will sell Euros or buy Japanese yen for exactly so many dollars and so many cents.” But the Federal Reserve can and does change the Funds rate. When they increase the rate, interest rates rise a bit all across the US banking system. This has the ripple effect of reducing the overall supply of dollars, which makes the US Dollar stronger against other world currencies.
Having a low dollar to euro exchange rate, for example, may not be entirely a bad thing for all Americans. We know that it makes daily life expensive for American tourists in Paris or Rome who must convert dollars to euros before buying a croissant or getting opera tickets. But, a cheap dollar in Europe makes American cars more of a bargain for Europeans to buy. European companies might be more likely to choose an American consultant or software company, because the price in dollars is now very affordable in Germany or France.
Currencies trading experts know that it's important to be following trends and staying alert for potential increases or decreases in the inflation rate and the shrinking or rising money supply.
July 2, 2009 at 9:34 am • read more
The release of deeply disappointing US non-farm payroll results, which fell by 467K in June versus expectations of a decline of 365K, has triggered quite a bit of volatility for the US dollar, but the Japanese yen has ultimately been the biggest gainer this morning as risk aversion has sent FX carry trades and US stock market futures tumbling close to 1.5 percent.
July 2, 2009 at 8:48 am • read more
TORONTO - The Canadian dollar opened at 86.71 cents US this morning, up 0.73 of a cent. The U.S. dollar stood at 115.33 cents Cdn, down 0.97 of a
July 2, 2009 at 6:43 am • read more
(RTTNews) - During early European deals on Thursday, the US dollar extended its Asian session gains against other major counterparts as a fall in European stocks boosted demand for the relative safety of the U.S. currency. The greenback thus climbed to a 1-week high against the British pound.
July 2, 2009 at 5:52 am • read more
KUALA LUMPUR, July 2 (Bernama) -- The ringgit closed slightly lower against the US dollar today amid a stronger greenback in regional markets, dealers said.
July 2, 2009 at 5:44 am • read more
The U.S. dollar was up against other major currencies in European trading Thursday morning. Gold fell. The euro traded at US$1.4100, down from US$1.4148 tardy Wednesday in New York.
July 2, 2009 at 3:28 pm • read more
(RTTNews) - Against the Brazilian real, the US dollar edged up in New York trading on Thursday.
July 2, 2009 at 1:59 pm • read more
(RTTNews) - The Australian dollar declined further against the US dollar in New York afternoon deals on Thursday. The Aussie-greenback pair slipped to a new multi-day low of 0.7938 by about 1:30 pm ET, compared to 0.8087 hit tardy New York Wednesday.
July 2, 2009 at 1:29 pm • read more
The dollar climbed Thursday against the euro as a worse than expected US unemployment report sent shockwaves through financial markets and the eurozone kept interest rates stable despite deflation fears.
July 2, 2009 at 12:18 pm • read more
TORONTO - The Canadian dollar traded at 86.21 cents US, up 0.23 of a cent on Thursday. The U.S. dollar was trading at C$1.16, down 0.30 of a
July 2, 2009 at 10:12 am • read more
Oil prices slipped below US$68 a barrel Thursday as rising unemployment in Europe and the U.S. helped strengthen the dollar and draw investors out of commodities.