Will the U.S. Dollar Beat out the Euro Again?
February 1, 2013 Leave a comment
In November of 2012, France was downgraded by Moody’s from an Aaa to an Aa1. This is not a huge drop, however it does mean that the dollar may rise above the euro again. Moody’s is a credit rating agency, most known for their CEO Raymond McDaniel, who rate anything from businesses to countries based on their income, debt, etc. Just before France had been downgraded, it had rallied to it’s highest level in almost two weeks.
Rob Ryan, a strategist at RBS Singapore stated that, “It comes as a surprise to nobody. I don’t think it has that much of an impact.” The Yen is also starting to drop below the dollar as well. Last year it had a 7-month low in comparison to the dollar.
At one point, back in the early 2000s, the dollar actually was stronger than the euro. What does this drop mean? We may see the day again that the dollar is stronger than the euro. People who love to travel (including myself) will be able to travel to certain areas of Europe for cheaper, which is always a benefit considering how expensive traveling can be.