How do foreign currencies react in front of the changes of international markets? Bad luck is a constant at global markets, investors didn’t welcome the measure that some Central Banks took to inject liquidity and reduce the price of foreign currencies cost and beat the credit crisis.
Some days ago information about retail in the United States was known, and as it can be seen, they registered a raise of 1.2% in November, a good data according to expenditure that shows that the movement of foreign currencies is still a constant.
These news are about to support the decision that the Federal Reserve took of reducing in a quarter of point the interest rate that is paid for foreign currencies.
In front of this situation most of the markets closed with red numbers, Wall Street opened in negative, but in the end it succeeded as the titular of the mortgage Freddie Mac said that he had enought foreign currencies to finance their operations.

The dollar in 2007 has fallen, even if the situation seemed to be something temporary, after some days the economic operators and analysts realised that the crisis would continue some more time.
2007 was a very bad year for the American economy, projections done for the beginning year were around 1.5% growing rate. This will make the Federal Reserve of the United States to take the interest rate from the actual 4.50% to 3.50% for the second term of 2008. And in case recession risk continues we will se the Fed reducing the rates to 2%.
We also have to consider that during 2007 the dollar suffered an unexpected shock, as the mortgage crisis knocked the financial system and brought different kinds of problems.
The problem is that the American economy spends in advance and this concerns to all its citizens. Noone has the money in cash to buy properties, Americans have credits for terms that some times are extended, and they live with a rhytm of expenditure that is not possible to control.
The problem appeared during 2007 when interest rates increased because of the crisis, thousands of Americans could not confront debts and this make a collapse at the financial system.
If something was missed by the dollar in 2007 to stop suffering, there was a big shock because of the high risk mortgage crisis where thousands of investors saw the end of one of the bases of the American economic system.

The dollar situation in 2007 was not very favorable. The economy slowdown during this year makes dollar devalue in 2007 regarding to other foreign currencies of the world.
During september the mortgage crisis in United Stated expanded to the principal markets of the world that lower their performance. The lack of liquidity as a consequence of high risk credits that are borrowed in United Stated caused a never thought recession at financial markets.
There are some nations that have chosen to keep the dollar in 2007 not very higher that its local currency value, but there are also other countries where the dollar value in 2007 has been raising. This is because high exchange rate means more profitability for exporters, this happens in countries as Argentina where high dollar has been since 2003 one of the bases of its economy, on the contrary, other Latinamerican countries have chosen to keep dollar not very high regarding its original currency.