Dollar on the rise..?

[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

[Soulmate7]

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

Expectations are that the next chapter of this crisis will hit Europe. It's more about the loss of faith of the euro rather than the strength of the dollar.

[Steve_A]

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

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

[lucrum]

Thanks for the answers.

I know that the norwegian money market trade in dollars, and dollars only. Euros isn't used here, as we aren't part of the EU. However, I'm not sure if the euros are playing in on this, as I have read some articles about the euro weakening. I know that the NOK is one of the strongest currencies in the world, which have made a load of headache for many businessmen. It at least has been too strong for it's own good.

Well, reading norwegian articles about this whole thing seems totally useless, as no one here really can give a perspective on things. They all seem pro-bailout and seem to think it's only the US having trouble.

Will just have to sit tight and see what happens.

[FrostyMcunicron]

I'm assuming some scum bag bbanker manipulating the market is pulling the strings. Much akin to the "reward center" in the brain, since USA passed the bail out, it gets a slight reward(being the dollars slight increase) before another massive problem. just speculation.

Oh, and if the dollars value raises a little bit it will increase the amount of unsuspecting victims clutching it for dear life when it falls through the 9th layer of hell where it belongs.