Stock:
Symbol Lookup
Register | Login
...
History
...
...

Pre Market | Dow Jones | Gold | Newsletters | Learn


Forex Market Update: Improving U.S. Economic Outlook Boosts Dollar

Thursday, March 14, 2013 8:37 AM
The U.S. dollar, which remained under pressure for many months, has rebounded strongly against all major traded currencies in the current year. While significantly improving U.S. economic macroeconomic environment ( as reflected by barrage of better-than-expected economic indicators) has been the key factor behind why global investors are increasing their exposure to “Almighty Dollar”, decline in Japanese yen in the wake of monetary easing and weakness in the Sterling owing to stagnating economy of the U.K. is also propelling the greenback. The yen traded at a 3-½ year low against the dollar earlier this week before recovering somewhat. Just last week, the U.S. dollar index traded to seven month high against major rival currencies. Earlier this week (March 12), the greenback hit 2 ½ year high against the sterling after a data release showed that U.K’s manufacturing output in January contracted more-than-expected. On Wednesday, the dollar received more boost after the Commerce Department’s data showed that retail sales rose at a fastest pace since September 2012 in February. Euro meanwhile sagged against the dollar on Wednesday after euro zone’s industrial output showed more-than-expected contraction in January. A data provided by the Wall Street Journal showed that the WSJ Dollar Index, a gauge on U.S. unit’s performance against a basket of seven most traded currencies, has climbed about 5% so far this year. On Wednesday, it rose 0.3% following retail sales data release. Meanwhile, analysts at UBS bank forecast the U.S. dollar will be the best-performing currency in 2013. According to UBS, the Federal Reserve might feel the need to pause its ongoing $85 billion worth monthly bond purchase program amid significantly improving U.S. economy. Nevertheless, analysts are worried that a stronger dollar will put pressure on the corporate earnings. “The stronger dollar definitely hurt us, everything we made outside the U.S. got translated into fewer dollars,” said Dennis Zeitler, chief financial officer of Mine Safety Appliances Co, according to the Wall Street Journal.  
PRINT

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2014 the year you get RICH!

Latest Headlines

U.S. judge says she is troubled by Apple $450 million e-books dealU.S. judge says she is troubled by Apple $450 million e-books deal
NEW YORK (Reuters) - A U.S. judge on Thursday expressed concern over a proposed $450 million settlement of claims Apple Inc conspired with five publishers to fix e-book prices, saying its provisions...
Canada board welcomes U.S. oil-by-rail ideas, says danger remainsCanada board welcomes U.S. oil-by-rail ideas, says danger remains
OTTAWA (Reuters) - The Transportation Safety Board of Canada welcomed on Thursday proposed U.S. regulations for oil-by-rail tankers but cautioned of persistent danger until tank cars built before 2011...
GM, Ford hopeful of European rebound despite Ukraine, RussiaGM, Ford hopeful of European rebound despite Ukraine, Russia
FRANKFURT/DETROIT (Reuters) - Ford Motor Co and General Motors Co said on Thursday the crisis in Ukraine has exacerbated a sales slowdown in Russia, but the carmakers said they were on track to turn...
Indian markets' post-election enthusiasm lost on consumersIndian markets' post-election enthusiasm lost on consumers
NEW DELHI (Reuters) - Software engineer Sanjay Bhatnagar used to watch a new Bollywood movie every week with his family, but now goes to the cinema once a month as spiraling costs of food and other ...
Argentina, holdouts meet in debt dispute with court appointeeArgentina, holdouts meet in debt dispute with court appointee
NEW YORK (Reuters) - Representatives for holdout investors and Argentina in the country`s ongoing debt default met for about three hours with a court-appointed mediator in New York on Thursday, less...

Loading Headlines...
 

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.


Learn the Stock Market

Sharper your stock trading skills with our stock market education section.