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Why dollar value raising though S&P rating for US is declining

By lalitha1729 ·
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Day by day US S&P rating is degrading but how its currency value is raising?

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I think

by boxfiddler Moderator In reply to Why dollar value raising ...

you need to do your own homework.

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What is S&P?

by Slayer_ In reply to I think

**** & ****?

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Standard and Poors

by boxfiddler Moderator In reply to What is S&P?

http://en.wikipedia.org/wiki/Standard_%26_Poor%27s

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Thats a complicated Wiki

by Slayer_ In reply to Standard and Poors

Over my head....

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Short answer

by JamesRL In reply to Why dollar value raising ...

Because in bad times the US dollar is seen as a refuge currency because of the amount of US gold reserves.

Which says that things are bad all over, and money that was invested in Europe, as an example, is being put into US dollars until things settle down.

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re

by lalitha1729 In reply to Short answer

nice reply

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Should be good for shipbuilders...

by AnsuGisalas In reply to Short answer

Since (BIG) ship prices are negotiated in US$.

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Most International Trade

by HAL 9000 Moderator In reply to Should be good for shipbu ...

Is negotiated in US $ hence it's the base line for all International Money Matters.

However here you have 2 forces at work S&P supplying their Best Guess as to what will actually happen instead of what will happen and the Future Traders trying to milk as much out of the system before the axe falls on them and they are called Rouge Traders.

The reality is that the system is broke and particular in the Stock & Futures Markets it's much more a case of Monkey See and all the other Monkeys do rather than any real sense of what is actually happening. Also remember S&P are only one of the 3 who guess and they are the only ones lowering the US Rating.

Also you should remember that any Rating Agencies guess are not meant to be taken as Gospel.

Col

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