Readers Question: Could you explain this article China had pegged its currency to the dollar, keeping its value artificially low. To peg your currency against the dollar This means that China has been trying to keep the value of its currency against the dollar the same. For example, if 1 Chinese Yuan = 0.16 Dollars …
Standard & Poor downgraded the US fiscal position from AAA to AA. This reflects the credit rating agencies believe that the US fiscal position has deteriorated and they are more pessimistic over long term fiscal consolidation in the US. It means that the rating agency feels the threat of US defaulting on its federal debt …
Readers Question: I have been interested in the US economy in the last few months, and with current news of their $14 trillion debt problem heating up, I’m wondering could the demand for dollars go down, if they were possible to have a similar or close problems of debt issues like Greece, and if the …
Though the UK economy may appear very weak to British consumers who are facing tax rises and spending cuts, there are various reasons which explain why sterling has recently been stronger and could continue its upward movement. Prospect of Higher Interest rates. With one of the highest inflation rates in Europe, and higher than US, …
Readers Question: Where is the US economy headed? Is it inflation or depression? Recently, Goldman Sachs predicted a rough year ahead for the US Dollar. They forecast the dollar may fall against Pound Sterling to $1.85 in 12 months. Against the Euro, they forsee it to fall to $1.55 in a year’s time. Exchange rates …
Readers question: Nor do I understand how they can weaken their currency through government intervention, if they are not intervening. Is it only US that is complaining about the value of the Yuan? The main thing is that Chinese Central Banks, with the support of the Chinese government are purchasing foreign assets, such as US …
Readers Question What are your predictions for us/Canadian dollar currency. Do you think they will reach par in 2009 ? Recently the Canadian dollar has been weak against the US dollar. This is because of the plunge in commodity prices which depress Canadian export revenues and decrease value of Canadian Dollar. Despite many problems in …
Readers Question: WHAT ARE THE PREDICTION FOR THE DOLLAR $ AGAINST THE EURO FOR 2009? 2009, will probably see both EU and US economies enter into recession. So far, the EU has been slow to cut interest rates; it has given greater prominence to the spike in inflation rather than the slowing economy. However, the …