So expect
further dollar strength in the next day or two and longer term if the price breaks out above 77.45.
If passed, each of these plans could lead to
further dollar strength.
Not exact matches
Other underperformers could include emerging - market stocks, which, while positively affected by any rise in commodity prices, would be vulnerable to
further strength in the U.S.
dollar, in which much of their debt is denominated.
While Wednesday's rate hike from the Fed was priced in, Odeluga says: «The lack of clear signals about plans to narrow monetary accommodation
further — none in the statement and none discernible in chair Janet Yellen's press conference — meant that some of the
dollar strength actually had to be unwound.
But by continuing to raise, and thereby adding some
strength to the
dollar, they're kinda working at cross purposes, at least as
far as regaining some control over price growth.
This seems to be a strong hint that the markets should expect any
further strength in the US currency against those of China's main trading partners to be at least partly offset by a decline in the renminbi against the
dollar.»
But
further strength in the U.S.
dollar would likely be good for equity markets that traditionally outperform on their currency's weakness, such as Japan and the eurozone, as a stronger
dollar will make their exports more competitive.
So
far, however, this has failed to translate into rising consumer price inflation, because the
strength of the US
dollar and falling prices for raw materials have offset higher labour costs.
The
dollar did not have much of an impact on many instruments but as
far as the gold prices were concerned, the market did show a lot of weakness even on slight note of
strength from the
dollar.
But
further strength in the U.S.
dollar would likely be good for equity markets that traditionally outperform on their currency's weakness, such as Japan and the eurozone, as a stronger
dollar will make their exports more competitive.
What it will do, however, is
further swell the Federal Reserve's balance sheet and lower the value of the
dollar, neither of which will contribute to the long - term
strength of the American or global economy.
If the Indian rupee keeps on losing
strength against the U.S.
dollar at that rate, you are
far,
far better to keep your money in U.S. currency.