Australian Currency Tumbles

Sterling has reached a point at which the foreign exchange rate has reached the highest limit. This rise is even higher that of the Australian Dollar and the currencies of New Zealand, South Africa. This rise in foreign exchange rate has been considered to be a worldwide move to avoid any kind of risk which pertains to the commodity markets. This kind of fall is evident in a number of sectors like the price of oil has been noted to fall over 3% to under $76 a barrel while gold has reached a new height of $1245 per troy oz.

China has been able to hold the strongest position in world’s economic index and this is evident from the statement made by the Conference Board of USA. But the correction in the claim has resulted in China losing confidence of holding a sustainable growth. Even the revision in the statement has proved to be of disastrous affect on a number of fields which in turn is bringing a number of changes. Rather it is the fragile US economy which is providing some amount of hope for recovery to the failing economic conditions.

These shows that very contrary to popular belief, the weak markets are the ones that are providing all the impetus needed for recovery. Again it can be seen that the European economy is banking on the Asian markets in order to recover from their doom. The fact that the Asian markets are providing the European markets with a ray of hope is quite surprising. Peter Boockvar, equity strategist at Miller Tabak + Co in New York believes that there could be a better output from the present scenario. Again the CBOE volatility index VIX has been seen to make a 16% rise, something which considered to be a noble move since last June.

Tags:  foreign exchange rate