Dollar to Become ‘Growth Currency’ During Next Decade

www.bloomberg.com...

May 24 (Bloomberg) -- The dollar will probably become a “growth currency” during the next 10 years, shedding its haven status of the past decade, as the U.S. economy outperforms Europe and Japan, according to UBS AG.

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“Over the next 10 years it seems likely that the dollar will shift to having a positive relationship with investor sentiment as America’s fundamentals appear more attractive than those of the euro zone, U.K. and Japan,” Mohi-uddin wrote. “The likelihood that the dollar performs strongly rather than weakly when investors are risk-seeking will signify a major change in the currency markets.” The dollar strengthened to $1.2384 as of 11:17 a.m. in London, from $1.2570 on May 21. Economic Outperformance The U.S. economy will expand 3.2 percent this year, according to the median estimate of 77 analyst forecasts compiled by Bloomberg News. That compares with 1.2 percent growth for the U.K., 1.1 percent in the 16-nation euro region and 2.1 percent for Japan, separate surveys show. U.S. equities led gains through the end of April, “until all markets were hit by risk aversion this month,” Mohi-uddin said.

We are seeing a repeat of the 90's asian currency crisis that sent the dollar to record highs. The eruo will reach parity with the USD, maybe even go lower.

If you eros are so smart, why do you keep losing to America?

reply to post by Number23


Well, it kinda hinges on the word probably which in the current world economic climate is at best urinating in the wind.

Does it occur to you that as this is a US source that it may be an attempt to bolster consumer confidence in what is a very gloomy economic climate? That perhaps some consumer bolstering might help an ailing dollar?

Originally posted by Number23
If you eros are so smart, why do you keep losing to America?

I'd be very interested in you showing us all how this is happening. As a little joke on your spelling mistake - maybe it's because we're lovers not fighters.

I thought the exact same thing when I saw the spelling mistake.

I guess we'll have to wait and see how America reacts to growing unemployment and expenditures in the near-future. Europe is still united. Jury's still out on America.