US dollar: dollar in the doldrums
Article Abstract:
The US dollar initially rose in value in 1996, but has dropped in value compared with the German mark since May 1996, and dropped in relation to the Japanese yen since Jul 1996. Low interest rates in Germany and Japan should help the dollar but they have not made much impact. German rates are still high in real terms, and there is concern over the US trade deficit. Germany may reduce interest rates further in order to lower the value of the mark in relation to the dollar.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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US dollar: out of steam
Article Abstract:
The US dollar may cease to rise in 1996, according to NatWest Markets. Low rates of interest in Japan and economic growth in the US may initially favor the dollar but over the longer term a domestic savings shortfall is likely to depress the dollar's value. Low rates of interest in real terms have tended to affect the US savings rate and higher growth in Asian economies where currencies are tied to the dollar means that investment tends to be attracted to Asia.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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