oussama94
05-28-2017, 23:23
For example, the U.S. dollar was very strong (against the euro) from
1999 to the end of 2001, a situation primarily driven by the U.S. Internet
and equity market boom and the desire for foreign investors to participate
in these elevated returns. This demand for U.S. assets required foreign investors
to sell their local currencies and purchase U.S. dollars. Since the
end of 2001, when geopolitical uncertainty rose, the United States started
cutting interest rates and foreign investors began to sell U.S. assets in
search of higher yields elsewhere. This required foreign investors to sell
U.S. dollars, increasing supply and lowering the dollar’s value against other
major currencies. The availability of funding or interest in buying a currency
is a major factor that can impact the direction that a currency trades.
It has been a primary determinant for the U.S. dollar between 2002 and
2005. Foreign official purchases of U.S. assets (also known as the TreasuryWhat Moves the Currency Market in the Long Term?
1999 to the end of 2001, a situation primarily driven by the U.S. Internet
and equity market boom and the desire for foreign investors to participate
in these elevated returns. This demand for U.S. assets required foreign investors
to sell their local currencies and purchase U.S. dollars. Since the
end of 2001, when geopolitical uncertainty rose, the United States started
cutting interest rates and foreign investors began to sell U.S. assets in
search of higher yields elsewhere. This required foreign investors to sell
U.S. dollars, increasing supply and lowering the dollar’s value against other
major currencies. The availability of funding or interest in buying a currency
is a major factor that can impact the direction that a currency trades.
It has been a primary determinant for the U.S. dollar between 2002 and
2005. Foreign official purchases of U.S. assets (also known as the TreasuryWhat Moves the Currency Market in the Long Term?