Stronger Dollar

By Isaac Cohen*

During the last nine consecutive weeks, the US dollar has increased against several major currencies, the longest climb in 17 years. As a consequence, stocks went down and the yield on 10 year US Treasury bonds rose, while gold and most commodities declined.

The markets are anticipating what is perceived as the coming increase in US interest rates, expected to happen around the middle of next year. Additionally, the expectation that interest rates will remain low in Europe and Japan makes dollar yields more attractive.

For instance the yen went down to 107.35 per dollar, a quote not seen since 2008, while the euro fell to 1.29 dollars, the lowest rate in 14 months. Most commodity prices went down, gold declined 0.6 percent, to $1,231.50, the lowest price in 8 months and crude oil futures also went down 0.6 percent, to $92.27 per barrel.

The fall in commodity prices, together with the anticipated interest rate increase in the United States, are slowing the performance of emerging market economies. In Latin America, Brazil is in recession, in a presidential election year, while regional growth projections for this year have been revised downward, particularly in stellar economic growth performers, such as Chile and Peru.

*International analyst and consultant. Commentator on economic and financial issues for CNN en Español TV and radio. Former Director, UNECLAC.

[ratings]

About Ramón Jiménez

Ramón Jiménez, actual Managing Editor de MetroLatinoUSA. Periodista que cubre eventos de las comunidades latinas en Washington D.C., Maryland y Virginia. Graduado de la Escuela de Periodismo de la Universidad del Distrito de Columbia. Galardonado en numerosas ocasiones por parte de la Asociación Nacional de Publicaciones Hispanas (NAHP) y otras organizaciones comunitarias y deportivas de la región metropolitana de esta capital. También premiado en dos ocasiones como Mejor Periodista del Año por la cobertura de la comunidad salvadoreña; premios otorgados por la Oficina de Asuntos Latinos del Alcalde de Washington (OLA) y otras organizaciones. Ha sido miembro del jurado calificador en diferentes concursos literarios, de belleza y talento en la región metropolitana. Ha visitado zonas de desastre en Nicaragua, Honduras y El Salvador e invitado a esos países por organizaciones que asisten a personas de escasos recursos económicos. Antes trabajó en otros medios de prensa de Virginia y Washington, D.C., incluyendo reportajes para una agencia noticiosa mundial.

You must be logged in to post a comment Login