Currency Exchange UK

 

US dollar close to 15 Month Lows

US dollar close to 15-Month Lows

The dollar has nearly reached 15-month lows as stocks weaken and the price of gold shoots up to beyond $1,120 an ounce.

The value of gold is now at record levels and is boosted by the dollar’s weak performance.  Many foreign exchange traders and investors head for gold as a safe alternative when the dollar retreats.

Another factor is that as many commodities are priced in dollars, they become far cheaper for holders of other currencies when the dollar is weak.  However, gold buyers using the euro are not at their highest levels.

Against a basket of currencies, the dollar is down 1.5 per cent this month.  Forecasts that the US interest rate will be kept at historic lows are keeping the currency down.

Shares in Europe and the world are down today but investors have remained quite bullish.  This is mostly due to improving sentiment on economic recovery in many countries.