OUTLOOK 2015: It estimates Movement Against US Dollar 31 Other Currencies
Bisnis.com, NEW YORK-- Two days before the closing of the currency market in 2014, the US dollar is almost certain to repeat history with currency strengthened against 31 of the most widely used in the world.
In addition, the greenback next year is predicted to continue the pace of appreciation.
Economists said there are at least three key factors that boosted the greenback slashing 31 currencies. All three are Japanese and European recession, the strengthening of the domestic economy and the acceleration of the reference interest rate expectations by the Federal Reserve.
The last time the dollar strengthening momentum against more than 30 other currency is when the Berlin Wall fell in 1989. "We were undergoing a phase shift in the US, especially on the plan raising interest rates. As a result, no one can go against the dollar," said Amherst economist Pierpont Securities LLC, Monday (12/29/2014).
Bloomberg Dollar Index Spot currency notes Uncle Sam average shot 11% against 10 other major currencies also broke the record for the highest achievement since the index was first used, 2004. In fact, the ruble should millstones up to 39%.
In detail, throughout 2014 the Japanese yen and the euro depreciated by 14% eroded by 13%. While the euro itself had gained against the yen by 1.3%, the Argentine peso plunged 24%, followed by the Norwegian krone by 19%.
In the same index, recorded only Hong Kong dollars were able to exceed the performance of the greenback. Hong Kong was able to grind Uncle Sam as much as 1.9% this year.
The consensus of economists and analysts compiled by Bloomberg said the greenback still will continue to strengthen against most currencies of the world throughout 2015.
Argentine peso is expected to fall to 29%, followed by the Danish krone and the New Zealand dollar around 6%. Meanwhile, the yen and the euro will continue to be eroded, though not as powerful as this year, which is projected to penetrate the range of 3%.
"Acceleration of the Fed's interest rate projections and improvement of the domestic economy will continue to boost the greenback, especially against the yen and the euro," said currency analyst at JPMorgan Chase & Co. Kevin Hebner.