The yen lifted off a 4-1/2-year low against the dollar after Japan's economy minister suggested the currency might have weakened enough.» Read More
Analysts predict the U.S. currency will build on its end-of-the-year gains, but it will only be a modest rally on the back of the improving economy and higher interest rates.
Moody's smaller than expected downgrade of Greece's credit rating shows that markets are starting to believe the government's efforts to contain the budget deficit, Greek Finance Minister George Papaconstantinou told CNBC Tuesday.
The European Summit kicked off Friday with Greece's mounting debt and deficit problems at the head of the conference agenda.
Nassim Taleb, the author of "The Black Swan", said he would retire from public life if Federal Reserve Chairman Ben Bernanke gains a second term at the helm of the central bank.
"The dollar over the next year or two will tend to see downward pressure because our recovery will be fragile and uneven," says one economist.
Pros say there is little to stop the dollar decline until US officials start curbing deficits or the Fed starts boosting interest rates.
The American currency is under siege. It is trading near 14-month lows and there are questions about whether it deserves its status as a reserve currency.
If you really want to understand the implications of the falling U.S. dollar, make a run for the border—the U.S./Canadian border, where currency fluctuations are felt just about everywhere money changes hands.
While most oil comes from outside the U.S., it is traded almost exclusively in U.S. dollars. That means investors who are worried about the value of the dollar can easily convert their dollars to oil.
The dollar is likely to sink further against the euro and could hit the lows of July 2007 at $1.60, Roelof van den Akker, chartist at ING Wholesale Banking, told CNBC.
There is renewed talk about the weak dollar. But don’t believe it.
The recent weakness in the dollar index is likely to continue and it could soon hit an all-time low of 70.65 points, Royce Tostrams, technical analyst from Tostrams Groep, told CNBC.
The S&P 500 index is likely to continue trading higher, but investors should remain wary of the market, as it lacks distinct momentum, Chris Locke, managing director at Oystertrade.com Management, said.
Jerry Castellini, president and CIO of CastleArk Management, Brian Dolan, chief currency strategist at Forex.com and Matt Zeman, trader at LaSalle Futures Group offered their views on where investors should put their money.
America and China have a problem. A very big multi-trillion dollar problem that shows no sign of going away whatever the financial crisis throws at it.
Talk of the perils of dollar weakness has been exaggerated for three decades—and in that way are somewhat comical--while predictions of its demise as the reserve currency is premature. The dollar saga is also the stuff of a short memory.
Australia's rate hike may not signal a stampede to raise rates. But smaller central banks could be tempted to tighten sooner rather than later.
Stocks tumbled on the first day of the quarter and Dave Rovelli, managing director at Canaccord Adams, and Warren Meyers, CEO of Walter J. Dowd, said this may be an opportunity for bears to seize control.
The S&P 500 could continue to push higher as investors "climb a wall of worry," said Phil Roberts from Barclays Capital.
Oil prices are coming down from August highs, while the Standard & Poor's 500 index is approaching levels where it will find it hard to move higher, Chris Locke, managing director at Oystertrade.com Management, told CNBC Wednesday.