Last time we saw this time of financial turmoil in fact the dollar rallied vs. most all other currencies. Not this time. In fact the dollar noted a record low e.g. against the Swiss franc. Now this despite the Swiss central bank actively have intervened in order to try to weaken their currency and rumors say the BOJ (Bank of Japan) apparently have actively tried to support the dollar by purchasing dollars in the tune of 50 billion just lately.
http://finance.yahoo.com/echarts?s=USDCHF=X+Interactive#chart1:symbol=usdchf=x;range=1d;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
and the dollar also lost against the Euro.
http://finance.yahoo.com/echarts?s=USDEUR=X+Interactive#chart1:symbol=usdeur=x;range=1d;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
Bottom line – the dollar in not seen any longer as the save haven in times of financial turbulence. That’s in fact a real sign something is about to happen in regards of the dollar.
I do think everybody understands that the UD dollar has to be devaluated even more, possibly some 50% in order to be able to pay off their debt. Now in order to do this the world’s view of the dollar has to change and thus is status both as a reserve currency as well as a safe haven for investors has to give.
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