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dollar

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    #122
    Amirani
    Moderators, Society & Culture Moderators Posts: 12,521 Mod ✭✭✭✭Amirani


    For ever odd wrote: »
    They are between a rock and a hard place on this one.
    My opinion is that it would far more riskier if they don't raise interest rates. Even if it's only a token effort, they get to save face for a while.

    Agreed - there's a rate rise coming this year. Probably be small, but it's coming.


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    #123
    For ever odd
    Closed Accounts Posts: 608 ✭✭✭For ever odd


    Diego Simeone wrote: »
    Agreed - there's a rate rise coming this year. Probably be small, but it's coming.

    Ok working of this assumption and the fed keeps hikes on a slow burner,what happens to the dollar? Will it strengthen or weaken?


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    #124
    TiGeR KiNgS
    Registered Users Posts: 1,435 ✭✭✭TiGeR KiNgS


    For ever odd wrote: »
    Ok working of this assumption and the fed keeps hikes on a slow burner,what happens to the dollar? Will it strengthen or weaken?

    My understanding is a rate hike will strengthen the dollar by absorbing dollars from circulation. i.e directs dollars back into the FED.


    Edit
    The real question is has a rate hike been factored into the current dollar value?


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    #125
    DarkDusk
    Registered Users Posts: 914 ✭✭✭DarkDusk


    A rate hike is definitely factored into the dollar value currently. This huge dollar rally recently has been driven by the belief of the Fed raising rates this year. I believe they won't raise rates and will eventually start QE4. Why are the Fed so afraid to raise rates when all they are going to do is raise them to .25%? Janet Yellen said that if they do raise rates they won't raise them again for a while and that the process will be very gradual. If the US economy is in "good shape" then why are rates at zero and why can't they raise them ever so slightly yet? My guess is that they are afraid of pricking another bubble that many people fail to see.

    Most probable scenario for me is that they raise rates and then lower them back to zero followed by QE4. Or else straight into QE4 if next few quarters don't show much growth.


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    #126
    Slattsy
    Registered Users Posts: 15,775 ✭✭✭✭Slattsy


    Some advice please folks and apologies for hijacking thread but my query is somewhat relevant and I assume some of the regular posters can offer some advice.

    I've a dollar account that I have set aside for a rainy day. However I'm not sure if the current rates will be as good 10 or 15 years down the line. Would you consider cashing in shortly?

    Thanks.


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    #127
    Mach 3
    Registered Users Posts: 233 ✭✭Mach 3


    I must say I found this old thread a fascinating read.

    Appreciate it was over two and a half years since it was started, and posters were in talking in real time - but some of the insights are starting to ring true.

    Is there any one reason for the dollar falling or is it a multitude of events?


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