US Dollar Gains After Losing Over 4 pct In Last Month
By: Roy | October 4, 2007
The US dollar is finally showing some sings of life after falling more than 4 per cent in the last month.
In fact, since August, the US dollar has lost over 5% on its index, which is a very significant loss for what was once considered by many a “safe” currency.
The US dollar has been falling due to the Federal Reserve cutting interest rates. In September, the Fed cut the rate by half a percentage point, a rate cut of 50 basis points. This may have spurred a rally on Wall Street but it caused a wave of selling in the US Dollar.
Some analysts such as Sam Kirtley of The Gold Prices Newsletter believe that the US dollar is in serious trouble and may even go into a full scale collapse, “The trouble is that Ben Bernanke thinks that cutting interest rates and printing massive amounts of dollar bills will save the American economy. Therefore he will continue to cut interest rates, which will send the US dollar lower and lower, but commodities such as gold higher and higher. The decline of the dollar will spark a wave of USD selling, making the situation even worse. The way in which we feel investors can protect themselves from this coming crisis is by investing in gold and gold stocks and documented on our website and in our free newsletter.”
Do you think the Fed will keep cutting interest rates?
Will the US dollar continue to fall or is the worse now over in the dollar?
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Fed Head Bernanke Holds US Interest Rates at 5.25 pct
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