Stories about dollar

How the mighty dollar weakens the rupee

Money only holds value because there are goods and services available to buy with that money. It is the goods and services that create a value for that money. Coconut water would be more valuable on a treasure island than kilos of gold. In that circumstance, it’s not the value of coconut water that has increased, but the diminished value of gold that is being reflected. The fewer goods and services available, the lesser the value of money – even if it is a pile of gold. Pakistan currently produces cotton, rice, fish, fruit, vegetables, pulses and much more. These ...

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Foreign aid: Shahbaz backtracks on a bold move

Chief Minister Punjab Shahbaz Sharif jumped on the populist pedestal and declared with much fanfare that the Government of Punjab would reject foreign aid to strengthen the nation’s sovereignty. In a poll on The Express Tribune website 74 per cent of the respondents voted in favour of the proposition. Apparently there are votes to gain by taking a tough line, and breaking the begging bowl forever. Imran Khan is another politician who has repeatedly stated that our dependence on foreign, particularly American aid has forced us to cede our sovereignty. Pakistan should reject American aid to regain our honour. If only it was that simple. Two ...

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Osama’s death will not stop the dollar’s decline

The news of Osama Bin Laden’s death will open new dimensions for the US dollar but only for a short while. The reason I say this is because while global financial markets are terming the news of Bin Laden’s as good news for the currency, the dollar will continue to stay weak in 2011. Stock markets will rally in the US, Europe and Asia, but these efforts will all be short-lived and the status of the dollar will go back to its original position. Analyses of the past The bull market for the US dollar is like an invisible man. An important aspect ...

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Why the US dollar fell during current global crises

An interesting aspect of the Libyan, Tunisian and Japanese crises was that the US dollar fell against other major currencies, by a lot. Normally, in times of crises, investors tend to move towards the dollar. It is viewed as a safe haven. However, during the current crises, the dollar fell to historic lows against the yen, before the massive international central-bank intervention reversed the fall (now, the financial market will remain uncertain in the next two years. You can bet on that). Even the Euro strengthened against the dollar and Europe is considered to be in a messy situation that needs ...

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