As the year is ending, the US dollar is still showing signs of improvement in the face of various challenges. On Thursday, it was reported that the dollar rose against other major currencies and could continue its advance into 2015. This hike came even after the Federal Reserve sent a signal to the public that a rate hike might be on its way soon. Foreign exchange companies like Prime Trade and others are watching closely as the US dollar outperforms its counterparts.
In Switzerland, the Swiss National Bank tried to limit access to the US dollar by threatening to bring about an interest rate of -0.25% on deposits that are of large proportion held by French citizens living in France. This move made by the Swiss bank was in keeping with their regulations in trying to stay safe in regards to their monetary policies.
Since December 8, the euro went down to its lowest against the US dollar. As for the Japanese yen, the US dollar outdid it by scoring a one-week high gain against its Japanese counterpart. The Japanese authorities in monetary matters decided to show some confidence in the economy of the US and kept the yen at 119.30, even shortly after the Feds changed their tone of keeping almost zero rates for a lengthy time. Policies being implemented in Japan, Switzerland and Europe are giving way to a bigger rise in value of the US dollar and increasing rates in these countries are expected to drive the US dollar even higher.
The US dollar made a downslide as it went up against the Russian ruble, but bounced back up by 12% on Wednesday. Russian currency is a bit shaky because of President Vladimir Putin’s recent actions regarding Ukraine. Since Putin’s actions, oil prices in Russia descended and the drop in oil prices helped the US dollar to increase in value. The Russian ruble last stood at 61.75 in comparison to the US dollar 2.68. As lower oil prices continue in Russia, experts are of the opinion that the country is running into financial difficulties since oil and gas are the country’s main earners.
The US dollar and the euro were seen trading at 1.2466. The US dollar and the Japanese yen went ahead and traded at 118.70. The US dollar and Canadian dollar came around at 1.1555. The US dollar and the Australian dollar (UAD) traded at 0.8255. The US dollar and the UK pound end their trading at 1.5734.
The dollar index when measured against six major currencies was last seen to be up by 0.1% at 89.222. Meanwhile, government bond yields were showing signs of improvement as well. The S&P 500 benchmark stock index was reported to be up 1.88%.
Foreign exchange investors are showing strong signs of confidence in the greenback. Meanwhile, US consumer confidence has risen to 93.8 points because of the positive performance of the dollar, which is an improvement since January 2007.
As the US greenback continues to show remarkable improvements in the face of tremendous setbacks in the past, experts are predicting that the country’s economy will continue to rise. In addition, as the holiday season is in full gear and consumer confidence is up, spending will escalate to a new level.
