U.S. Dollar Index approaches all time Record low

The U.S. Dollar Index remains hovered close to a minimum of 3 years in Asian trade, relying on the prolonged low interest rate risk and a growing US budget deficit. Some market players are waiting for that as markets resumed normal operations after the holidays of Easter the Index is likely to test a record low. As reported at 3: 12 (JST) in Tokyo, the Dollar fell to 73.735.DXY, a new low of 3 years, once it has broken through the DXY 74.170.Fosse created in 2009.

The market players are even more concerned that the American economy could falter if agreement between the President and Parliament is insufficient to reduce the deficit, or these increases or reductions in spending significantly. Or the two could compel the U.S. Federal Reserve Bank to keep interest rates at the low current history, even at a time, when central banks around the world are increasing interest rates to fight inflation.

Most analysts agree that the decline of the Dollar comes from the loss of investor confidence in assets in U.S. dollars, especially in view of the recent threat of a downgrade of credit by Standard & Poors. The markets now seem to measure the impact of a downgrade of U.S. debt, although they were well accepted and absorbed the original announcement.

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