America Crisis – why dollar is still increasing against rupee despite of America’s economic crisis?
By admin in Crisis FAQ | 3 comments
America Crisis Question by Eagle: why dollar is still increasing against rupee despite of America’s economic crisis?
Best answer:
Answer by Sean L
usa is cutting its rate like crazy this year.
normally, when a country cuts its rate their currency will go down.
this is due to the investor will take their money out for the low rate country to higher ones.
for the case of USA, which means they are selling USD.
When they are more supply than demand, the price will go down.
for these days, the USD is going up even in these hard time.
this is becuase the gold had went down like crazy too.
gold is the most conservative hedging fund for those who trade USD.
It is like buying usd and gold(as insurance) so the investor will have a good sleep as they well protected
Know better? Leave your own answer in the comments!
America Crisis
Related posts:
email this | tag this | digg this | trackback | comment RSS feed
eternal student | Aug 27, 2011 | Reply
A big part of it flight to safety. This is a global crisis. So investors flee to the safety of US Treasuries.
Also, investors reduce their exposures to all risky investments such as emerging market stocks and bonds, and are bringing their money back to the US.
Some of it is forced selling. Many hedge funds and other leveraged investors had borrowed and invested in risky assets abroad. They are selling those assets and bringing the money back to the US to pay off their loans and reduce their leverage.
Predatorprey | Aug 27, 2011 | Reply
The world’s economic problems sucks much more than the economic problems in the USA
carpet2828 | Aug 27, 2011 | Reply
now , the currency of USD is very unnormal, that is very serious kes, now, all world finance like crazy, u cant think like normally, u just can think like the crazy people, then, u will know the answer, u know what i mean, all prinsip at the moment is unnormal, so, u just can think all like unnormal, it is possible USD going high , it is possible oil price < $ 50, it is possible USD still keep in international change, so, all u cant think normal, just can think like after drinkking. then, the answer will coming out.