It has been seen that markets have been witnessing fluctuations. These fluctuations seem to have raised concerns among traders and they now have been keeping an eye on every twist that has been taking place with the US dollar.
For now, it has been found that the dollar is on the verge of witnessing a new change. Most probably, the euro and the yen are going to witness a hike and that will make dollar to witness a decline. Due to the decline, it seems that things being heavily dependent on the dollar will also get affected.
To cite an example, foreign stocks, crude oil and precious metals are the ones likely to get affected. There are a number of reasons for which the changes will take place.
The first thing is authorities concerned are tensed about the declining inflation. There are chances that they will put in cheap money into system and will keep on doing the same till the time inflation returns to 2% target.
Second reason is that the European and Japanese economies have been witnessing a healthy rise. With passage of time, both the economies are getting firmer.
Other reasons are that inflation will affect dollar and fiscal fight is also going to drag on the dollar.
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