At $1.36 and $2.01, the greenback is dangerously close to record lows versus the euro and pound.
The British currency hasn’t been this expensive for Americans since 1981.
But that’s just the beginning: Yesterday, the U.S. dollar also hit all-time lows against the Aussie dollar, a 25-year low against the New Zealand dollar, and is just shy of a 30-year low against the loonie.
“Investors are favoring currencies where they believe interest rates will rise,” explains Chris Gaffney, from the EverBank trading desk. “The Bank of England and the ECB will likely announce rate increases later this week, and currency traders are buying these currencies in front of those decisions. The European economies continue to expand, and unemployment fell to a record low in May as companies added jobs to meet strengthening demand.”
But that’s just the beginning: Yesterday, the U.S. dollar also hit all-time lows against the Aussie dollar, a 25-year low against the New Zealand dollar, and is just shy of a 30-year low against the loonie.
“Investors are favoring currencies where they believe interest rates will rise,” explains Chris Gaffney, from the EverBank trading desk. “The Bank of England and the ECB will likely announce rate increases later this week, and currency traders are buying these currencies in front of those decisions. The European economies continue to expand, and unemployment fell to a record low in May as companies added jobs to meet strengthening demand.”
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