Tortola, New York (PressExposure) January 11, 2008 -- After the long dip the dollar rose to certain height, in spite of the fact that the gains were too limited, on the contrary euro have been trading above 1.47 us dollar. But the major concerns stay with the US housing markets which possess consequential risks to the US economy, where there is enormous prospect for the decline in the interest rates by the Federal Reserve again by the end of the month. Many of the market playerâs have eyed upon the federals new turn. The feeble us economic data has stimulated concerns for recession in the worldâs biggest economy that could spark fear for the us federal reserve which could bring down the interest rates the coming month.
The dollar was on the down trend against its major currencies yesterday on account of constant us housing data, and many of the investors turn to the euro zone being curious for British concerns about interest rates on the coming week. The dollar moved to a higher position but it remained confined on account of weak us data and concerns for the rates cut by the fed. The European central bank and bank of England declaration for the interest rates have been the most projected events of the week, which will take the economy to the new direction.
The US central bankâs having current interest rate at 4.25% it is expected to fall below a point by the fed in the coming conclusions. The investors or the market drivers are uncertain for the prospects of hike in rate for the euro zone looking over to the concerns about the problems prevailing in the US economy which can also include the Europe under its premises. As analyzed by the http://www.forexwebtrader.com the market rate for dollar stood at 109.6 yen looking over the previous close of 109.13, and at 1.1164 versus Swiss franc which had a close of 1.1165 earlier on the other hand the pound was at 1.9803 against the us dollar having previous close of 1.9699. However the yen went down on a big rate due to the Australian dollar which rises to a height on expecting the rates hike and rise on gold to a next high record.
Itâs a general phenomenon that when there is decline in the interest rates of US it will weaken the dollar worth which compels the investors to go for the oil. The foreign investors are more fascinated towards oil trading in dollars especially when the dollar is on a down trend it can be analyzed that the decline in the dollar worthâs leads way for speculative playerâs to the oil market its due to these activities that took the oil prices above $100 previous week.