Analysts see that the dollar will continue its downhill slide in the medium term as long as the Fed carries on its low interest rate policy for an "extended period". History has shown that it takes a period of about 12 months after an increase in interest rates for the dollar to appreciate relative to the other currencies. Many analysts believe that the dollar will continue its slide even till after 2010.
Financial markets around the world have been too optimistic about global demand. Risk aversion should rise again.
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