Tortola, Newyork (PressExposure) January 06, 2008 -- Dollar now being at 1.4409 against euro stumbles against its major counterparts euro-dollar executed one week high of 1.4417. As looking over the yesterday, franc closure of 1.1581 against dollar it extended as high as 1.1559. Against the Japanese yen, US dollar fell to a five day low of 113.91 looking over the deterioration in the value of us dollar requires close monitoring by the central bank. what will be the effect of it on the economy. People nowadays are much familiar with effect of deteriorating value of currency and that is the lesson which will remain with them in the coming future.
Although dollar accomplished to gain its durability the economic circumstances continues to weaken it against its major counterparts. The desire to yield high returns is the basic reason behind the fluctuations in the currency values and also the availability of cheap funds allures many of the investors to increase there investment that intensifies there risk.
With the minor effects of US credit problems caused great liquidity crisis in the financial credit markets, the European central bank is the first central bank to inject the required funds in to the financial market to let the funds available at cheap rate. The ECB will continue to concentrate on the inflation and its steps will not be interdicted by the US federal reserve.
As reported by www.forexwebtrader.com us dollar and the euro continued 4 month high against the british pound. The housing sector which had been the major support in the phase of the UK growth has commenced to shatter into pieces it could be predicted that its going to effect largely during 2008.