The Expectations of the Dollar - Essay Example

Only on StudentShare

Extract of sample
The Expectations of the Dollar

Interest-rate futures demonstrate that the traders are certain the Fed will increase its benchmark to 4.75 percent on March 28, and predict about a 65 percent chance of another increase to 5 percent at the May meeting. However the outlook was not the same say in October 2005 when Fed was expected to go in for graduated dosages of increase in interest rate in keeping with the trend began since June 2004. The dollar had then risen 2.3 percent against the yen since the end of June 2005. The dollar ran its third straight quarterly gain, reported in October 2005, against the yen, the longest winning streak since 2001, as the Federal Reserve stuck to its policy of ''measured" increases in interest rates. The markets had then expected the dollar to rally to about 115 yens. The yield advantage of 10-year US Treasury notes with Japan had averaged 2.87 percentage points in 2005 year and reached as much as 3.27 percentage points on March 28 2005. As a result of these Japanese investors were buying the dollar to purchase overseas assets, such as Treasuries strengthening interest in dollar. ...
Download paper

Summary

The dollar declined for a fourth day against the yen and Euro after a report showing slower-than- expected inflation eased speculation that the Federal Reserve will raise interest rates more than twice this year. The dollar has fallen more than 2 percent against the euro and more than 1.8 percent versus the yen the week ending Mar 16, the biggest drops since the week ended Jan…
Author : leonardschiller

Related Essays

Dollar versus Yen -The Road Ahead
Interest-rate futures demonstrate that the traders are certain the Fed will increase its benchmark to 4.75 percent on March 28, and predict about a 65 percent chance of another increase to 5 percent at the May meeting. However the outlook was not the same say in October 2005 when Fed was expected to go in for graduated dosages of increase in interest rate in keeping with the trend began since June 2004. The dollar had then risen 2.3 percent against the yen since the end of June 2005. The dollar ran its third straight quarterly gain, reported in October 2005, against the yen, the longest...
2 pages (502 words) Essay
Student's Demands on and Expectations
But still, they are not mature enough to take complete responsibility (although partial) for their actions and reactions....
3 pages (753 words) Essay
Economics GCCs Dollar Peg.
This trend is considered a major contributor to the rising levels of inflation in the gulf region. The current levels of inflation are stated to be the highest in the last 30 years (Seville, 2008). At the same time the GDP growth started declining during the same period. Zawya (2008) wrote about some of the research studies carried out in 2008 which predicted that the gulf nations would be able to register a lower nominal GDP rise of about 16.4 percent till 2010, provided the crude prices average around $120 per barrel in 2008, $131 in 2009 and $133 in 2010. But, with crude oil prices tumbling...
2 pages (502 words) Essay
Million Dollar Consulting by Alan Weiss
Client relations are dominated by the consulting sector. As client needs for specialist advice change, so does the nature of consultancy, and it becomes increasingly difficult to distinguish between overlapping old and new requirements. A chief concern in human relations is to understand the visible and hidden selves of clients. Employees tend to judge as unacceptable behavior that deviates or appears to deviate from their own adopted norms. Very often, consultants do not take into account the role of clients' value and their loyalty. Alan Weiss underlines the importance of these concepts and...
3 pages (753 words) Book Report/Review
Classroom Management: Setting Expectations
The teacher should explain to the students that, when they see the teacher's hand in the air, or hear a bell being sounded, they should first stop all movement, and then turn to the teacher. Next, they should be ready to hear what the teacher says. The teacher then repeats all the steps to the students and looks at them to make sure they understand. The class practices the procedure, and the teacher then reinforces the procedure by using it all the time, offering praise when the procedure is followed, and correction when it is not (Wong, 1991, p. 183)....
3 pages (753 words) Essay
discuss the reasons for the recent weakness of the US Dollar.
It still rules as the de facto world currency....
5 pages (1255 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!