07 December 2009

Dollar to Begin a Buoyant Phase?

The US dollar reached nearly its highest level on Friday against a basket of currencies. This was after the latest unemployment figures for the US revealed that far less jobs were lost in November than had been expected.

- Here's how many jobs experts had predicted to be lost for November: 130,000

- Here's the actual number: 11,000

The good news served to provide a boost for the dollar - a currency which has been on an extended weak trend for some time. This morning it had slipped against the Japanese yen but overall currency analysts expect the dollar to remain buoyant.

Added to the dollar's boost is the fact that many are expecting the US base interest rate to rise again sooner than expected. However, as yet this is still merely speculation.

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