Dollar Fails to Rally and Bottoms at One Year Low

Finally the Dollar could no longer hold on to its value and position vis a vis other currencies as it continued to slip down rapidly to finally bottom out to a one year low ,on September 16, last wednesday.

On the other hand, the new Finance minister of Japan was optimistic about Japans economic future, as Japanese Yen reached a seven month high against the dollar, as he considered that a strong Yen is good for Japan.

The Japanese yen to dollar rate fell 0.9% against the yen to a seven month low of 90.13.

The euro to dollar rate hit a nine month high of $1.4715. The last time the euro hit $1.47 was in September 2008.

Some currency experts are predicting the Pound to dollar rate will hit $1.70 in the near future.

Massive US deficits also caused investor concern but higher stocks were the main driver of risk appetite.

With stocks going up, it continues to be very difficult for the dollar to rally.

Traditionally the dollar trades lower when stocks perform well.