Sunday, January 4, 2009

Dollar fizzling out?

We touched on the declining dollar recently.

There is an interesting article on Bloomberg this morning discussing the dollar rally fizzling out. The link is here:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aKpyxDjnfiJ4&refer=home

It's interesting to note two things:

1. They've accepted that all the money the US Federal Reserve is pumping into the markets to try and stimulate economic growth is finally starting to have an impact on the the value of the US dollar.

2. Currencies like the dollar, yen and Swiss franc are going to be the losers while higher yielding currencies such as the Brazilian real, Indonesian rupiah and Polish zloty as well as emerging marketing currencies are going to be the winners.

I thought that was interesting considering that many of the "strategists" within the SA investment scene are talking up Asian markets and currencies at the moment.

No comments: