(Kitco News) - Gold prices are modestly lower in early U.S. trading Monday. The yellow metal bulls continue to find it very difficult to shake off the negative impact of a stronger U.S. dollar against the other major world currencies. The U.S. dollar ...
The primary reason why the U.S. dollar is the reserve currency is that it is the dominant currency in the oil trade. This dominance provides a source of artificial strength in the dollar as it increases demand for U.S. dollars and U.S. Treasury securities.
"Yields on dollar-denominated debt notes listed in an overseas exchange could potentially be a tad more than on the loans being refinanced, which could marginally increase RCom's borrowing cost," said an analyst at a foreign brokerage.
The British pound to Australian dollar exchange rate (GBP/AUD) is 0.68 pct higher on a day-on-day basis having reached 1.182. The euro to Australian dollar exchange rate (EUR/AUD) is 0.68 pct higher at 1.4390.
Dow Jones-FXCM U.S. Dollar Index certainly faces a risk for a larger pullback as the preliminary 3Q Gross Domestic Product (GDP) report is expected to show a downward revision in the growth rate to an annualized 3.3% from an initial forecast of 3.5%.
"The end goal was not as much to create a functional replacement for the U.S. dollar as to create a discussion about contemporary monetary value," Purrington said, as well as a discussion about the functionality of the bills.
Some recent developments in global markets could be temporary, but there is a widespread consensus that a stronger U.S. dollar is here to stay. Emerging market (EM) economies have traditionally had much to fear from a rising greenback, while for ...