Dollar continued with its fate following the trend of continued rate cut that took euro to the new path of gracious yield, whereas the yen been on the perilous position owing to the holiday epoch which took the market to half way down to its normal outcome.
Dollar extended to the year loss against the euro and yen because of the federal rate cut, it’s expected to decline the rates cut in the coming quarter of the next year the 2008 which will bring the dollar under great depressions. As the market players borrows the required funds from the nation that provides it in cheaper rates and invest in the one yielding high returns this cycle drives the fluctuations in currency market, which can wash off the profits. As the yen can be gained on the deliberation, BOJ is on the way to keep the rates stagnant where as the Federal Reserve lowers the financial credit which will take yen stronger versus the dollar.
As analyzed by www.forexwebtrader.com Gold went to the record break high on Monday, on account of us dollars weakness, high inflation which led to hike in oil prices and the assassination of the Pakistani politician Benazir Bhutto which compelled the investors to go for the save assests like gold, treasuries rather than the investing in riskier currency. It rose to multi days high of 850$. It’s being predicted that there are still expectations for the gold to go high looking at the prevailing factors and it’s upwards trend.
As after the long holiday period there are expectations for dollars to go higher in the coming year the dollar is at the attractive position for the market players to go for it as these can bring the us dollar back from its deteriorating position.
