When it comes with foreign exchange market industry, traders from all around the globe are confident investing with USD which has been performing well in the midst of economic slowdown. Eventually, even though there are many countries these days which are suffering from economic downfall, the US remains strong. In fact, it is the most important and credible currency which has significant effect to other countries.

Why American Dollars?

Back in 2009, the US Federal Reserve Bank printed money to purchase bonds because of the recession. The Fed printed money and manage to add $3.5 trillion in order to balance the sheet of economy and currency. This result is an excess supply of money in the market resulting USD to drop. In the mid-2014 the Fed stopped producing additional printed money. This affects the USD interest rate hike and soaring high again.

The USD makes an impact to real estate businesses. Lots of Americans can rejoice since the real estate will become cheaper as well as imported goods such as oil. A stronger dollar which slows down the inflation rate of the economy with allows the Fed to have more leeway economic growth.

Although the US dollar remains Forexchef strong in the world wide forex currencies, you must be aware that the USD is like a double-sword. Yes, the foreign goods, real estate and other commodities go cheaper, but American goods will become more expensive. This means that exports will no longer be competitive which affects most companies relying on revenue from international market.