Troubles ahead for US Dollar (maybe)

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Joachim

Troubles ahead for US Dollar (maybe)

Post by Joachim »

There are several factors:

1. Trump prefer low interest rates. Yellen is for reappointment early next year and probably will be substituted by Trump loyalist.

2. Some experts believe that US Dollar is currently 20 percent overvalued and mostly supported by rate hikes which may stop under Trump appointee.

3. Quite a few countries moving along their economic cycle and entering tightening cycle (Europe,Canada, Australia,India etc). So US Dollar becomes relatively less attractive. E.g. Yesterday (at one point) it dropped versus Canadian Dollar more than 2 percent. Dollar is permanently declining versus Thai baht during last couple of months. Though I am not ready to switch to Canadian Dollar, I do gradually increase my savings in Swiss francs.
Jun

Re: Troubles ahead for US Dollar (maybe)

Post by Jun »

Jim Rogers seems to take the view that the next time there is a crises, people will move to the dollar as they usually do in times of crises. So it may go up substantially in such events. He sees it weakening substantially in the long term, on the back of all the debts & so on.

Anyway, I've always taken the view that if I want to be spending a large proportion of my time in Asia, I need to invest a large proportion of my assets there so that currency risk is reduced. That certainly worked out very well when the pound fell suddenly in the summer of 2016.
Joachim

Re: Troubles ahead for US Dollar (maybe)

Post by Joachim »

Another substantial drop for Dollar on Friday. Around 1 percent against Australian Dollar and 0.5 percent with respect to Thai baht. Lower against almost anything else.
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Re: Troubles ahead for US Dollar (maybe)

Post by Gaybutton »

You can check the latest exchange rates at: http://www.scb.co.th/scb_api/index.jsp
Joachim

Re: Troubles ahead for US Dollar (maybe)

Post by Joachim »

At the moment, Australian Dollar gained 1.60 percent versus US counterpart just in the period of several hours. This is huge move in the world of hard currencies (and not the first one). Most of the people,of course, are concerned about moves versus Thai baht... But Bank of Thailand frequently interferes with forex exchanges which softens the possible currency moves. If, however, Dollar continue to fall so rapidly with respect to major currencies, Thai baht will move also more aggressively...
Up2u

Re: Troubles ahead for US Dollar (maybe)

Post by Up2u »

The baht increased .4% since yesterday, 33.44. For Americans, this means you'll get a rate of about 33.3 at the ATM after 12:00 pm today.
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