End of bearish days Dollar

End of bearish days Dollar

12-14-2009 09:26

After optimistic speculations about the US economy improving faster than expected, the Greenback posted at the end of this week’s trading session the highest rate against the Euro, increasing the attractiveness of Dollar priced investments.

Greenback rebounded

After a downward trend that led to the lowest rate in 2009 at the start of this month, the US Dollar rebounded as it rose against the majority of the 16 most popular currencies on the back of retail sales data that beat estimations and due to increasing consumer sentiment.

Interest rate increment

The Kiwi Dollar was one of the exceptions that was able to rise against the US Dollar due to the expected borrowing costs increments, indicated by the central bank of New Zealand. The South Pacific country would follow the Australian example, as Australia was the first wealthy country to increase interest rates after the international recession.

Bearish sentiment

Some currency analysts confirm the end of the bearish sentiment towards the US Dollar, due to the fact that optimistic data will probably continue to be released which will result in the Fed increasing interest rates earlier than expected. This will lead to a considerable capital flow into the North American nation as the national currency appeal among investors will improve.