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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Gersh Avery who wrote (6274)	3/11/2005 4:53:13 PM
From: Walkingshadow	Respond to of 8752

<< Since the value of the dollar is based entirely on perception, or confidence, there is less confidence in it. >> Well.... actually the value of the dollar is determined by buying pressure and selling pressure, and perception/confidence is just one determinant of buying/selling interest. For example, now the dollar is pricing in the likelihood that the Japanese central bank will diversify its currency portfolio and stop buying dollars, or even sell some of its dollars. The Japanese Minister of Finance quickly backtracked on the issue when they realized this would only further spook the already jittery dollar market, but this was only enough to partly calm the dollar. There's a ton of speculative trading in that currency that will react very quickly to such things. T