Forex Rupee vs Dollar.
The debate over the value of the Forex Rupee vs dollar is heated. Many people are of the opinion that Forex trading in the U.S. is much more dynamic and volatile than that of the currency traded in Japan. It has been observed that a particular currency's strength or weakness can either go up or down depending on various international events. The Rupee, on the contrary is very strong across the world and its fluctuations depend solely on the U.S. economy. This is one reason why many economists say that the U.S. economy is the best global economy to trade in and this is the reason the Rupee always remains stable against most currencies.
In order to know which currency pairs are the best to trade against the Forex Rupee you will have to take a look at some important factors. One of the most important factors traders look at is the direction in which the markets are moving. Markets tend to move either up or down depending on various events and news reports. Most traders also prefer to trade the pairs which show an upward trend as compared to the downward trend of the same currency.
The U.S. dollar is currently stronger against many other currencies in the world than against the Forex Rupee. The Rupee is currently weaker against the currencies of other major economies like the euro, yen, pound and the British pound. At times the U.S. dollar and the Euro became very strong. This is mainly due to the ongoing economic recession in the U.S. economy and many speculators. These speculators buy the EUR/USD (the Euro versus the dollar) at reduced rates and sell them once the markets turn in the favor of the U.S. dollar.
On the other hand, there are many pairs that show a steady decline against the Forex Rupee. These include the Pounds Sterling, Canadian dollars, Australian dollars, Swiss francs and New Zealand dollars. Traders have reduced their exposure to these currencies due to their unstable economies and interest rates. A lot depends on the direction of the economy of the U.S.A and many traders still opt for these pairs.
The currencies of the European Union and many other nations are known as the European Pound. This is because they trade very heavily with each other. In recent times many traders have shifted their trading from the major currencies to the European Pound due to their relative strength against other currencies. Although, this currency pair has been weakening against the Dollar due to the ongoing global financial crisis. Many economists believe that the crisis will continue to have a negative impact on the economies of Europe and eventually lead to a weakening of the Euro versus the dollar.
One of the major pairs which have a consistent trend in the Forex market is the Euro vs the dollar. This trend has been consistent over the past year. Traders in China and Europe have been shifting their money from the Euro to the dollar due to the low exchange rate between the two currencies. However, a slowing of the economic recovery in Europe will increase the demand for the Euro and dollar due to lower interest rates and tighter credit requirements between the two countries.
Japan recently devalued the Japanese Yen but has since put this issue behind it. Due to the low exchange rate between the two currencies this has caused more people to switch their currencies from the US Dollar to the Japanese Yen. In the past several years the Swiss Franc was often exchanged against the Euro. However, this has decreased as the Swiss economy has performed poorly. Now due to the constant depreciation of the Swiss Franc has lost value against the Euro. This has made the Swiss Franc, a less preferred currency to trade against the Euro.
The most important thing that you should remember when looking at the Forex Market is that there are no fundamental reasons that currency pairs can only go in opposite directions. All markets have their own unique factors that influence their direction. Therefore, all currency pairs can be expected to move in different directions over a time period. Traders will need to pay close attention to these factors in order to make profitable trades. It is possible to profit from Forex Trading with a minor amount of capital compared to the large sums of money that can be made by successful traders with massive investments.