Wednesday, November 23, 2016
Multiple factors contribute to strong dollar
ANBOUND
The recent exchange rate of Renminbi against the US dollar continues to fall; other than being caused by China's economic problems, this is largely caused by the strong US dollar. The analysis of Anbound reveals that under current global economic situation, the US dollar is becoming the sole strong currency. There are several factors contributing to this, including the US economy is improving healthily, the Trump factor, possible raise of interest rates by the Federal Reserves, and Brexit’s effect in weakening London’s and Europe’s financial development. It would be likely that the US dollar will stay strong longer than what had been expected, and this will last for long-term. The weak situation of Renminbi too, will last for a longer period of time.