- We were bullish in Dollar and still we maintain that view. But dollar moving higher beyond a point would be negative for USA.
- Dollar Index had corrected towards 72 from 120 and now it has jumped towards 14-month high around 87 and it is slowly making the impact of recession felt more. US had been able to boost other economies as their currencies have depreciated.
- US Exports would get hampered if Dollar appreciates more and that may risk a double-dip recession there.
- Yuan has appreciated against other currencies as it is pegged against Dollar and it would hamper Chinese exports also and if China derails then many others would soon follow.
- Dollar appreciation hurts commodities globally as they possess inverse relationship with the US greenback.
http://www.youtube.com/akprabhakar#p/u/4/VTbcpcTTo_Y 2 April 2010, Mumbai Seminar we had talked about Dollar appreciating from those levels.
What exactly is Dollar Index? Read to learn - http://akprabhakar.blogspot.com/2009/11/what-is-dollar-index-and-why-is-their.html
