Hi lucrum,
As currently the dollar is thought to be the international trading currency, it's nearly always sought after.
I can't speak for Norway, but over here Brazil is what is called a secondary market (US and UK are primary), so when the primary market is thought to be healthy and money is rife, the investors look for bargains in the secondary markets. This makes an influx of dollars and with more dollars the quotation becomes lower. In the current situation, the money invested in these secondary markets is being taken away to safer destinations withing the primary market and so with the withdrawal of dollars, less dollars are flowing and the quotation rises. It's a simple case of supply and demand.
A general rule of thumb accross here is if the bourse goes down the dollar will rise (of course there are other factors but just to keep it simple).
Thus, the dollar can actually weaken against a hard currency, like the Yen or the Euro (both primary markets) and strengthen against a softer currency like the Real or the Ruble (secondary markets). it's all swings and roundabouts.
Best regards,
Steve
Quote:
Originally Posted by lucrum
I'm witnessing a pretty radical rise of the dollar these days towards NOK (Norwegian Currency)
What is making the dollar rise in this matter, when everything else tells me it shouldn't? Anyone can explain or have a theory of why this is?
Thank you in advance |