Market Tips: Dollar Rally Largely Over

The Federal Reserve will again lower interest rates on Tuesday to fight the deepest recession the U.S. has known in years, and may also announce some "unconventional" measures.

Investors looking for rising currencies should probably forget the dollar for now, as the rally is largely over, experts tell CNBC.

End for Dollar Strength

The U.S. is expected to cut interest rates this week but the level of Fed funds rate no longer matters much as its impact on the economy will be limited, says Dariusz Kowalcyzk, chief investment strategist at CFC Seymour. He also explains why the recent strength of the USD is almost over.

Money Supply to Rise

"Global money supply is going to rise because all of the key central banks around the world are going to not only cut interest rates to record low levels, but also to quantatively ease, which is to effectively inject money into the economy, Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said.

Yen's Rate of Appreciation May Slow in 2009

The yen's rate of appreciation is likely to start slowing next year, predicts Anthony Morriss, senior currency strategist at ANZ Bank.

Growing Appetite for Risk

Christian Goldsmith, international investment specialist at Fortis Investments sees a rising appetite for risk as the year goes along in 2009.

Preserve, Watch, Learn, Bond

It is still the time to be very cautious, so keep cash, preserve your wealth, and rethink risk management, Mark Daniell, chairman of Cuscaden Group said. You've got every reason to still buy bonds, Jean-Francois Robin from Natixis said.

Both agree to ride out the current market volatility by investing in government bonds and convertible bonds.

Continue to Focus on Defensive Plays

As we enter into 2009, focus on defensive plays, while avoiding the more cyclical sectors, advises Christian Goldsmith, international investment specialist at Fortis Investments.

UK Property has Further to Fall

UK property prices could reach a bottom by the end of 2009, but not before falling another 10%, according to data from Rightmove. Miles Shipside from Rightmove has the details.  

For the Investors:

• Pros Say: China Won't Save World from Recession
• Market Tips: Dollar Rally Largely Over
• Charts Predict: Gold at $1,500; Nikkei to 10,500

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