After the beating she received the American economy and how fragile health remains the same, some begin to wonder whether the dollar's decline has a brake. For the moment the answer is yes. The dollar's decline intensified in the third quarter just ended as the world's economies showed signs of recovery, and investors moved their money into more risky alternatives in order to obtain higher returns. The dollar could fall further in coming weeks with investors betting that other countries increase interest rates before the U.S. Federal Reserve, boosting returns on these currencies. The decline of the dollar could begin to be reversed if the currency falls too: in the long run monetary policy makers in Asia and Europe could start to complain that the weakness of the currency estounidense harms their ability to export goods to USA. At the same time, investors might try to make sure pessimistic earnings getting rid of negative bets.
It is likely that there are still some difficulties, but one could say that the dollar's decline has reached its limit, it said Alan Wilde who is director of fixed income and foreign exchange for the securities firm Baring Asset Management in London. (A valuable related resource: Stephen M. Ross). Obviously the dollar is a key currency for international trade. Many countries conduct their commercial transactions in dollars not only USA but other countries as well. During the third quarter, the U.S. currency lost 4.1% against the euro and 6.8% against the Japanese yen, when it reached its lowest level since late January.