2005 A Good Year For The Dollar
According to Reuters.com, 2005 is a happy year for the US Dollar. Rallying at 13% against an index of currencies this year, the Dollar ends the year on a strong note after a three-year "bear run" between 2001 and 2004.
It has, in fact, "risen nearly 15% against the Yen and Euro this year" thereby bolstering its interest rate advantage. The Dollars 13% increase is its first gain in four years and its best performance since 1984. Its index also rose at the same 13% increase making it the best since 1997.
Factors that contributed to this increase includes the strong US consumer sentiment data, data on existing US home sales, and the high incidence of Dollar buying since the Christmas Holidays.
Despite these, investors remained hesitant to run any risk at the moment since the Dollar remained behind the Euro as data from Germany strengthened the latter, closing at $1.1844 with a 0.1% increase over the Dollar.
(Source: Dollar Holds Firm In Thin Trade Before US Data, Reuters.Com)
It has, in fact, "risen nearly 15% against the Yen and Euro this year" thereby bolstering its interest rate advantage. The Dollars 13% increase is its first gain in four years and its best performance since 1984. Its index also rose at the same 13% increase making it the best since 1997.
Factors that contributed to this increase includes the strong US consumer sentiment data, data on existing US home sales, and the high incidence of Dollar buying since the Christmas Holidays.
Despite these, investors remained hesitant to run any risk at the moment since the Dollar remained behind the Euro as data from Germany strengthened the latter, closing at $1.1844 with a 0.1% increase over the Dollar.
(Source: Dollar Holds Firm In Thin Trade Before US Data, Reuters.Com)
posted by creditinfo at 4:26 PM
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