1. Import prices:A weaker USD makes imports more expensive. When the value of the US dollar decreases, it takes more dollars to buy the same amount of goods or services from other countries. As a result, the prices of imported goods and raw materials increase. This increase in import prices can contribute to inflation because businesses may pass on the higher costs to consumers.2. Cost-push inflation:A weaker USD can also lead to cost-push inflation. When the value of the US dollar declines, it becomes more expensive for businesses to purchase imported inputs, such as raw materials or machinery. These higher costs can lead to an increase in production costs, which may be passed on to consumers in the form of higher prices for goods and services.3. Commodity prices:Many commodities, such as

Bitcoin and the US dollar are two different currencies with unique characteristics. Learn about the differences between Bitcoin and the US dollar, how they impact their values, and which may be better for your needs.Courtesy of Pexels.comBitcoin and the US dollar are two very different types of currency with unique characteristics that impact their values.In this article, we will explore the key differences between Bitcoin and the US dollar and how these factors affect their respective values.One of the most significant differences is centralization.Bitcoin is a decentralized currency, meaning that any central authority or government does not control it. On the other hand, the US dollar is centralized, with the Federal Reserve controlling its supply and distribution.This is why t

Silver could hit a nine-year high of $30 per ounce this year and become a better performer than gold.Insufficient supplies of silver — as well as its tendency to be a better performer than gold in periods of high inflation — are the reasons. Silver is a material commonly used in the manufacturing of automobiles, solar panels, jewellery and electronics.Spot silver prices notched a record high of $49.45 in 1980 against the backdrop of a 13.5% inflation rate, up from around $4 in 1976, when the rate of inflation was cooler at 5.7%.Precious metals can also be considered as a currency, against the USD when the faith and trust in the fiat currency is diminishing.The real danger will be with the continuous rise in interest rates and yet the dollar starts weakening, just like the pound. The dollar

How is it possible for a higher U.S. interest rates and yet a weaker Dollar?Some countries are also beefing up gold reserves helping to push up prices. That effort has become easier in recent months as the value of the dollar has weakened, making it cheaper for countries outside of the United States to buy gold.“We are seeing a lot of physical buying of gold from central banks. Not surprisingly, a lot of it is from Russia and China, countries that are keen to reduce their dependence on the US dollar,”Question: How is it possible for a higher U.S. interest rates and yet a weaker Dollar?Answer: When inflation exceed interest pay-out, investors will flock to inflation hedge asset like Gold. Current inflation rate at 7.1% and interest rate at 4.5%.The real danger will be with the con

For moment gbp is having some problems... for moment its down... dollar getting stronger!   $Australian Dollar - Dec 2022(AUD2212)$ Uk gilts has been sold for the last couple of days... for moment we got news BCE will offer more gitls into markets in january,,,, for moment... critical levels for gilts.. moment sell.

The dollar has shed more than 4% so far this quarter, falling back from a two-decade high it reached in September. Last week, investors turned bearish on the greenback for the first time since July 2021.What are the reasons and the risks of a weaker dollar?3 Reasons:1. Dial down interest rate hikeSurprised inflation data in the United States, which showed that prices rose more slowly than expected in October. That bolstered expectations that the Federal Reserve could dial down interest rate hikes soon.2. Optimism in China & EuropeChina could be preparing to ease coronavirus restrictions and Europe’s warmer fall lead to slightly more optimistic economic forecasts. If these economies perform better than expected other currencies could look appealing again.3. Sanction effectWith the wider

1. The mighty US dollar 2. America’s economic engine stalls 3. Corporate America tightens its belt 4. Welcome to bear territory 5. War, soaring prices and radical policies collide There’s now a 98% chance of a global recession, according to research firm Ned Davis. The mighty US dollar – It creates destabilizing effects for Wall Street, as many of the S&P 500 companies do business around the world. By one estimate from Morgan Stanley, each 1% rise in the dollar index has a negative 0.5% impact on S&P 500 earnings. America’s economic engine stalls – The No. 1 driver of the world’s largest economy is shopping. And America’s shoppers are tightening their belts with inflation. Corporate America tightens its belt – For eg. Apple is scrapping plans to increase iPhone 14 production after