Exchange Rate Now!

Forex Traders have been sitting on the edge of their seats recently as the biggest currency in the world, the US Dollar (USD) seem to suffer a collapse and depreciated against other major currencies in the world. Such fluctuations has the ability to make millionaires or bankrupts overnight.

The reason for the fall lies mainly with the originator – United States. While the gloom over the global financial crisis might have subsided, the federal government still needs a size-able budget to keep the government going, to keep the economy going and to even keep the war in Afghanistan and Iraq going. All these money comes from loans, issued in the form of treasury securities, which essentially has the same effect of  issuance of new US Dollars. As the US government continues their trend of spending and chalking up budget deficit, the amount of securities issued increases. This essentially depreciates the value of the US Dollar (more…)

During the global economic/financial crisis that started in late 2008, many investors liquidated their positions into cash holdings and purchased heavily into both the Japanese Yen as well as the US Dollar, leading to a higher exchange rate for these 2 currencies against the rest of the global currencies.

For example, 1 Australian Dollar was trading at 56.4 Japanese Yen in February 2009. The Australian dollar (as well as the rest of the global currencies) has recovered and is now trading at 1 Australian Dollar compared to 77.5 Japanese Yen.

Similarly, 1 Australian Dollar was trading at 0.63 US Dollar in February 2009. The Australian dollar has recovered and is now trading at 1 Australian Dollar compared to 0.82 US Dollar.

The US Dollar (USD) and the Japanese Yen (JPY) are among the most traded pair of currencies in the world. Amongst themselves however, the exchange rate fluctuations is (more…)