Maybe you don’t stay every day in front of a financial screen but you like being informed about the decisions that are taken at the Stock market. .
Being informed is a key point for those that spend their time investing foreign currencies. How does the fall of the interest rates of the Fed influence regarding foreign currencies investment?.
We should consider that high interest rates show that taking money is more expensive, while the reduction of these rates reduces the currency quotation.
After the decision taken by the president of the Fed, Ben Bernanke, of reducing the interest rate in a quarter until taking it to 4.25%, world foreign currencies reacted on the following way.
foreign currencies investment turned up to be favorable for those that bet for the dollar as after the decision known yesterday the American currency increased slowly in front of the euro. Even thought the dollar falled against the Japanese yen.
On this way, who makes a foreign currency investment should know that the euro reduced its value to 0.3% in front of the American currency, until 1.4670 units. While the dollar falled to 0,7% against the Japanese yen, for some financial analysts American currency would have reactions in the next four weeks, and on the contrary we would confirm what many are asking, take interest rates to 3%.