Effect of interest rates on dollar-assets? [Please help]

[peterma]

Mid, the guy to read is one John Murphy for insight on precious metals and FX - a simple approach is to view Gold as the alternative currency to USD - especially on short term.

There is a little more to it, but have a look today - see the big push up on Gold, then check USD/JPY and the timing of the move down.

Then home into Eur/Usd at the same time - not a time to buy the dollar.

Have a good weekend.

[AUdvantages]

Interest rates rising gives lenders incentive to buy USD relative to other currencies because the USD tends to perform flatly. On the other hand it reduces incentive to borrow USD so rates rising doesn’t necessarily mean the USD will appreciate because this creates long-term consequences. The USD thrives on tying up money.