Friday, March 27, 2009

Can US dollar still remain as safe heaven?

Published on Thu, Mar 12 2009

Looking at recent situation it’s difficult to see if we can still take US Treasuries as the risk-free assets or not. Apparently the safe-haven position that has advocated the world’s most liquid currency for almost 8 months currently is beginning to confront struggle. Growth predicts for the US keep on reducing as policy attempts dropped short of a consumer and credit-led force in economic movement. On the contrary, the FX market’s distinctive high yielders are in fact finding economic projections that indicate a fast revival. It is making these currencies gainful for both their sound fundamentals and relatively high return. But sentiment after expansion projections and sentiment according to liquidity come under 2 very diverse states of anxiety and risk.

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