Will the dollar rate go up ?

[simplyjo]

Does anyone know if dollar rate will go up or down ?

[DEADMAN]

I don't think when there is still Economic Crisis, price may take to increase. The way we can know in our country the dollar is increasing is, Gold price decreases dollar increases and vice versa.

[Fergal]

No one knows for sure. The current rate reflects what the market believes is the appropriate price for the dollar right now. Any opinion as to whether it will go up or down, is just that - an opinion.

Why do you ask?

[pendelton]

A lot of variables come in to play when trying to predict how FOREX will do, although, you can watch the trends to get a feel for how it will do it is never certain.

[simplyjo]

Thanks Fergal.. Well, I asked basically to know where the economy is heading and to get any idea if I should trade in Dollar/Rupees.. Depending on conversions etc.. :)


No one knows for sure. The current rate reflects what the market believes is the appropriate price for the dollar right now. Any opinion as to whether it will go up or down, is just that - an opinion.

Why do you ask?

[Nazreen]

Thanks Fergal.. Well, I asked basically to know where the economy is heading and to get any idea if I should trade in Dollar/Rupees.. Depending on conversions etc.. :)

For forex traders and market analysts, it's usually the other way around. They analyze the economy of 2 countries to see which currency will go up and which one will down.

[simplyjo]

Gee.. the dollar rate dropped. So, what do the forex traders do ? how do they judge currency rate fluctuations ? I just want to get a better idea about the market and how it works..

[pendelton]

simplyjo, there is a lot to FOREX.

Watch all the reports for the gross national products of all the nations you are interested in trading the pairs of.
Watch all the reports on how the unemployment is doing in your target nations.
Watch all the speeches from the national authorities in those nations, learn to pick apart the speeches for what they are really saying with hidden meanings.
You have to pay attention to the economies for all the target nations.

[DEADMAN]

Sometimes you've to wait than worrying about and thinking too hard.

[scifi]

Hmm..well as the economy is performing, I think Dollar rates will go down in the near future too..Today only it has closed at its weakest point since June against rupee.. But, you never know when the economy switches back to reverse gear..!!!

[Nazreen]

Gee.. the dollar rate dropped. So, what do the forex traders do ? how do they judge currency rate fluctuations ? I just want to get a better idea about the market and how it works..

As Pendelton has mentioned, there's a lot of things to consider when it comes to Forex. But looking at this from the fundamentalist's point of view, you have to take into consideration the economies for these countries - in your case, the US and India.

I've read about the indicators that affects the US but I don't know anything about India. So I'll just share with you those indicators that affects the US economy.


Gross Domestic Product (GDP)
Unemployment Rate
Consumer Price Index (CPI) - measures inflation
Trade Balance - If exports > imports then it's positive or more USD is coming in (increases demand which will have positive impact on USD). If imports > exports then it's negative or more USD is going out (increases supply and lowering price).


There are a few more indicators aside from those I mentioned above. To get a feel for the economy, I'd suggest that you watch bloomberg or other financial news networks.

[devilbatista]

We don't know that if dollar rates will go up or down. We know dollar rate is down than Euro rate. There is an advantage also. We can find goods cheaper in America than in Europe. This is useful for someone who is buying goods.