Indian Stock Market News and Views.

The Future of Dollar ?

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photocms The Future of Dollar ?

There has been tremendous predictions about the future of dollar and the US economy from as early as 1999 they were making up with two important predictions one was the break down of the US economy and the other was the end of dollar hegemony. The dominance of a currency is world trade is determined with the three criteria like it should serve as a unit of account. work well as a medium of exchange and also should be a store of value. The first point describes the people should accept the valuation of the currency, The second one is that they should be ready to trade in return for goods or services. the third situation would be that it should give future demand, to hold as savings which are valued in units of the currency. 


The conversion of gold into currency has helped with the growth of the dollar post second world war, the dollar was widely used as the principal currency for gold conversions which replaced the pound sterling. The growth of the dollar was made rapid by the Marshall Plan were US was the main supplier of services and goods for the reconstruction of European countries after the war. The demand was mainly for the US commodities, and naturally dollar had its place in all the International transactions. The US was able to keep the value of the dollar fixed in relation to gold till 1971. Any currency which follows the basic three properties would be used as the reserve currency irrespective of political preferences. The US dominance in the world production of goods and services from the 1980′s to 2007 nearly accounted for 30% of the world production (GDP). The future of the dollar will be at risk when the world production shifts from the US sub continent to some other countries which exhibits the same political stability. The next near candidate would be Euro but the EU27 production has fallen continuously since 1980′s and is around 25%. China did you say so its about 6% of the GDP of the World.  

So the dollar will have its presence for some more long time without the lack of a proper candidate to replace it by all means.

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Future of the US Dollar Part 2 

How To Trade with Interest Rate Futures

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indian rupees new 300x197 How To Trade with Interest Rate Futures

Knowing the future and taking advantage from it, is a dream come true for every one. Those that possess the skills are able to reap the benefits from it. On Dalal Street, investors and speculators alike will forecast the market movement of the index and commodities by trading in the derivatives. The NSE launched trading in Interest Rate Futures (IRF) recently on 31st Aug after a gap of 6 years.


Is Deflation a problem?

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Is Deflation a problem?
deflation 300x300 Is Deflation a problem?

Inflation was a problem which we have been hearing normally over the years, and we are too new to Deflation. Is deflation a problem? You might have heard that India’s inflation figures has dropped to a negative 1.61%. We all are aware what Inflation means so normally deflation would just make the opposite of Inflation.

India witnessed the last deflation 33 years ago,(any ways I was not here to witness that) As for a normal person when we hear that its deflation it would mean that the prices have come down, but if we go to the market to find out the truth we can see that its still the same and has not made an difference, then what does this deflation figures actually mean. Don’t be confused over that in India the inflation rate is calculated on an year on year (YOY) basis on the whole sale price index.

US Dollar – Is it falling? Future of the US Dollar

| Filed under Economy


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US Dollar has been known as the world’s reserve currency. The widely acceptance of the Dollar has made it more spread out with many governments, banks, foreign investors .They have helped to achieve dollar as the world’s dominant currency. In adding to the strength was the economic strength showed by the American economy.As with the case of any tools in the financial sector we would know that there will be boom and weakness, Dollar is the highly required currency for International business. The period by which the dollar now faces would be that of decline. This would not mean to create a panic with it, the dollar would provide more trading opportunities for smart investors.