It is not only the stocks that are sliding down the steep path. The US forex market too is going through the lows. Though the market is pinning some hopes on a last minute debt deal, the dollar slipped. Rather the Euro and the Yen have seen some good signs in the Asia-Pacific trade. As the value of USD is going through a rough path it is better for you to use a forex calculator to find out what it is going to cost you and if your transaction is going to help you gain any money or more than what you are going to invest.
The US forex market now
The GBP/USD hit almost 1.6270 during the early European trade, which is the daily low; this pair subsequently consolidated at 1.6293, dipping by around 0.04%. Actually the countdown for US is getting quite serious. Another weak has passed by where still the US government has not been able to come to a proper conclusion on the nation’s deficit troubles. This is going to create additional troubles for the greenback; actually it was seen that the European funding market – which is a source of the liquidity costs that plays against the US dollar’s safe haven status – had come into a temporary period of relief with the help of a massive bailout effort by EU. Thus, even amidst the uncertainty, the euro rose to a high of $1.4396 from around $1.4353 in the latest New York trade.
As per the recent reports, it was also seen that the dollar was weaker against the Japanese yen, which was falling to a near 4 month low of 78.13 Yen, from that of 78.52 yen. However, it was also seen that it was able to somehow cover up some of the losses and was last seen to be traded at 78.36. Other than this, the USD also dropped to a low of 0.8135 Swiss francs, from 0.8180 on the same day.
The greenback was also down 0.27% against a full deal of different currencies at 73.997, with limited losses and this can be because of the markets which are still assuming that the sanity is going to get back in Washington and a proper debt deal will be designed in place within the exact time limit.
The two parties now are actually in almost a deadlocked situation over the demands of the Republicans for a short-term increase in the debt-limit that would actually force the President to request a further borrowing authority in the year 2012. This has prompted the White House Chief of Staff Bill Daley to warn that there is going to be some stressful days ahead for the different financial markets, with the debt ceiling deadline to be able to lift the $14.3 trillion U.S. borrowing limit; which now only a few days away.
So, it was seen that the Foreign exchange reserves declined almost by 112 million to $314.50 billion in the last week as a result of a sharp drop in the value of the foreign currency assets, and the official data showed. The foreign currency assets dropped by $115 million to almost $282.29 billion during the last week as per recent reviews. The foreign currency assets which are expressed in the US dollar terms include the effect of the appreciation or may be the depreciation of the non-US currencies like the pound and sterling, euro and yen held in the reserve.
However, on the other hand, the value of the special drawing rights was seen to increase by $2 million to almost $4.58 billion and the reserves with the International Monetary Fund rose by $1 million to almost $2.95 billion.
Neil R. Williams is a financial consultant and a member of many financial communities. He is also an active member of DebtCC community and takes part in forum discussions. Please follow us at www.facebook.com/debtconsolidationcare for regular updates. Moreover, Neil has written many financial news articles and have them published across the globe.