Exchange Rate Now!

Just when everyone thought that we had recovered from the global financial crisis which started in late 2008, the Dow Jones, NASDAQ and S&P 500 are now reeling from a long overdue aftermath and plunged in late Feb 2010.

The direct impact on forex led the a spike in US Dollar against major currencies like the Euro and the Japanese Yen. The hope is now on the drop in unemployment rate to stabilise the economy and bring back the much needed confidence into the stock markets around the world and as a result bring more predictability into the forex market.

As at 6 Feb 2010, the US Dollar was trading at 

1 U.S. dollar = 0.733460466 Euros

or  Euro = 1.3634 U.S. dollars. Nowhere near the levels last seen in Dec 2008 but surely a worrying sign even for USA, as a appreciating US Dollar may hamper exports and put a damper on economic growth.

Adding more complexity to the equation is the result concern on European debts. Countries in European Union (EU) like Greece, Romania, Spain, Portugal, Turkey and other countries in Europe like Iceland still could not shake off the stigma of an imminent collapse in financial system. If this scenario truly materialize in the Eurozone, it could lead to (more…)

There has never been such a spotlight on Albanian Lek (ALL) as in recent weeks. With the Lek tumbling some 3% against the Euro in Sep 2009, forex traders are nervously sitting at the end of their seats wondering if Albanian Central Bank may just give up on the Lek and advise a switch to the Euro.

The Albanians themselves are asking the same question. After all, the Albanian currency has been under harsh pressure during the whole of 2009, due mainly to high government expenditures and low levels of remittances (the Albanian Leke value diminished by some 12 per cent since January 2009). Being a nation in Europe, it makes perfect sense for Albania to make the switch to Euro. A look at the (more…)

The Japanese Yen rallied against most major currencies when it was announced that LDP had won a landslide victory against the Japanese Democratic Party (JDP). On 31st August 2009, the exchange rate for the Japanese Yen temporary became favourable, with the appreciation of the Japanese Yen against the US Dollar, Euro and the Chinese Yuan.

The question most people are asking is whether the Japanese Yen will continue its appreciation trend. It is hard to forecast the exchange rates of the Japanese Yen in the short term, as there are still uncertainties if the new leadership under the LDP can turn around the Japanese economy and ensure Japan can continue to maintain it’s position as the second largest economy in the world.

For tourists, it is unlikely for the Japanese Yen to depreciate largely during this transition period (where LDP assumes key cabinent positions). Therefore, the is little point deferring a trip to Japan just to save off for the best exchange rates.

For students, it is worthwhile to note that studying in Japan can be more expensive in the years ahead, (more…)