The Dollar Reclaims Some Prestige

  • 16 years ago
  • Uncategorized
It was just a few months ago that the US dollar was seen as a bad investment. Having reached lows against the euro and near record lows against the UK pound, many investors and countries were talking about the end of the dollars dominance. Though the worldwide financial crisis may have had the US property sector as its instigator, it is also drawing many people and countries back to the popular currency.
Since the spring, when the mortgage crisis really began to make headway, the dollar has gained over 20 percent against the euro and strengthened significantly against the pound, Swiss franc, Australian dollar and other currencies. A recent jump in the value of the yen has seen that currency actually rise against most others, including the dollar, though.
The stronger dollar is good news to American consumers, particularly those who want to invest in property abroad. Conversely, it is not great for those in the UK, Europe and other areas of the world who want to invest in the US. One benefit for overseas investors, though, is the fact that the US mortgage and financial crisis has led to some of the lowest property prices in years in very popular holiday destinations, such as Florida and California.
Whichever side of the ocean(s) you are on, there is good news and bad as the dollar strengthens.
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