Stocks closed another day of losses on Friday despite the value of the once-mighty dollar going up slightly. Stocks have taken a little bit of a downturn as of last week, and part of the speculation is revolving around the uncertainty of the Federal Reserve Stimulus which goes back under discussion next week. Perhaps some people are fearing bad news amidst this uncertainty.
Dollar Value Goes Up Despite Stock Market Losing StreakStocks across the US exchanges aren’t the only markets that took a hit this past week. Asian markets fell a little bit, as well as European exchanges. The US market declined a reported 1.7% and Europe a mere 0.2%. The US market took such a hit due to the speculation that when talks resume next week with the Central Banks, that they will decide to reduce or remove the Federal Reserve Stimulus due to a steady improvement in the US economy. Other nations around the world have not been so fortunate, and they are expected to continue stimulus measures.
Don’t get your hopes up too soon about the dollar going up in value either. The US Dollar is still not as strong as the Euro, though a weakening in the Euro and a slight uptick in the Dollar could be sending things favorably our way in the future. The overall wealth of Europe appears to be slowly shrinking, further contributing to the slow decline in the Euro. What was once passed as a currency to stabilize that region may be losing some of its foothold.
Japan and other Asian markets are seeing a big decline this week, with the Yen falling even farther. This leaves the value of the US Dollar at a 5-year high against the Yen. Japan is expected to boost its economic stimulus measures to help rebound their economy, which has struggled for the past decade.
Featured image from NYSE.com
Dollar Value Goes Up Despite Stock Market Losing Streak.