Jun 28 2013

Some of the major economic statistics in USA indicates the economic recovery which will be leading towards the US monetary policy on slightly higher upcoming interest rates.  

It is a good news that after facing a decade’s decline, US dollar is going to gain its worth. The greenback value has been strengthening as the signs show the improvements in U.S economy.  This is a development that hasn’t been taken place since many years. Some of the traders and analysts are considering the recent rally as positive sign of approaching towards the end of Dollar slump.

Against the 6 major partners, the Dollar index rose to 82.7742 on last Monday. It got the biggest gain in the last 19 months which was approximately 2.2%. Particularly Dollar was very strong against the Japanese yen which took a rise of 3.8% to 97.90 yen last week and it was the highest since the December of 2003.

Nordvig the global head of currency at Normura said that I will not be surprised if the USD climbs higher over the new 3 or 4 years. He also forecasted a prolonged strengthening of the American Dollar. 

Rate Range Projection by Bank

Next  Week     :  97.00 -  99.00
Next 3 Months   :  90.00 - 105.00