Dollar Pressured For Last Two Weeks

The US dollar has been getting slammed for the last two weeks in global forex currency trading. Last week there were concerns about the triple A credit rating of the US being downgraded which sent the dollar to a five month low against the euro. Fears of a downgrade faded after Moody’s Investor Service affirmed the credit rating of the US.  The euro to dollar rate rose to $1.41 for the first time in 2009 as risk appetite rose on hopes that the global recession is easing.

Investors Worry About Massive US Deficits

The record $1.8 trillion U.S. budget deficit added to investor worries and affected currency exchange rates globally. Earlier in the year the Chinese expressed concern about mounting US debt and recently the South Korean South Korea’s National Pension Service announced a reduction in the purchase of US treasuries adding to the dollar’s woes. Global stock markets posted 2009 highs dimming the safe haven luster of dollar denominated assets.

Expert Predicts ‘Tepid’ Recovery

Some currency analysts believe that as risk appetite rises the dollar may react in a negative manner to dismal economic data. Boris Schlossberg of GFT stated, “The dollar is being slapped around. The forex market is now getting realistic about this (U.S.) recovery.” Schlossberg also predicted a “tepid” recovery. On Friday the DXY was down 1.4% the lowest since December and is down 6% for the month, the largest monthly fall since 1985.

Pound Posts Largest Monthly Gain in 25 Years

The pound to dollar rate posted its largest monthly gain in almost 25 years and last traded at $1.6169. Higher house prices and higher consumer sentiment in the UK were credited for the pound’s rebound. A survey by Merrill Lynch & Co revealed that 25% of the 220 fund managers surveyed thought the pound was undervalued.

Global currency exchange rates have been affected largely by the ‘green shoots’ recovery theory. Rising stocks have reinforced this belief among investors with a resulting rise in risk sentiment.

German Banking Concerns Pressure Euro

The dollar rose against the euro on concerns about Germany’s banks brought the Euro’s rally to a halt. Improving consumer confidence also helped the dollar to euro exchange rate. Weak Euro Zone data also put pressure on the euro. The Conference Board’s U.S. consumer confidence index rose to 54.9 significantly higher than the 42.0 that had been predicted for May.

Treasury to Auction $101 Billion in New Debt

The US dollar traded at five month lows last week pressured by concern that rising deficits could endanger the credit rating of the US. This week the US Treasury will auction $101 billion in new debt which may test investor’s appetite for dollar assets. Last week the euro to dollar exchange rate rose as high as $1.40 but was trading at $1.3893 on Tuesday. Media reports from the UK stated that Germany’s financial regulator said that toxic assets held by German banks would “like a grenade” if banks did not take advantage of government bank plans putting further pressure on the euro.

Solid Demand For Treasuries

The dollar to yen remained at 94. 86. Fears that foreign investors had lost confidence in US debt were relieved after Tuesday’s auction revealed solid demand for US debt. Last weeks concerns about the possible downgrading of the US’s credit rating were relieved by the results of Tuesday’s auction. Melvin Harris of Advanced Currency Markets stated, “There’s been so much talk about the U.S. rating being downgraded, but to be honest, even if this happened — and I don’t think it will — the U.S. is not going to default. That shouldn’t be the prompt to sell dollars.”

Dollar and Yen Remain Strong

Risk appetite is still dominating currency markets and is affecting global currency exchange rates. While both the dollar and the yen remain relatively strong investors are seeking higher yielding currencies and investments. For most of the week currency traders expect forex markets to follow the lead of equity markets.

Currency Converters From Trusted Sites

There are many currency converters available online. A few are well known like the Yahoo currency converter and the popular XE Universal Currency Converter. These are well known and trusted sites. Other well known and trusted currency converters include Bloomberg, CNN Money, and many others operated by reputable companies. All of these sites offer global currency exchange rates in real time.

Beware of ‘Shareware’

A quick Google search using the search terms ‘currency converter yields 30,300,000 results. While most currency converters available online are supplied by reputable and honest companies and financial institutions there are a few bad apples in the bunch. Some currency converters available online are offered by free file sharing websites which are notorious for downloading Trojans, malware, adware, and spyware on to the computers of unsuspecting forex traders.

Keyloggers

Using MacAfee Site Advisor as a guide it is revealed that many of the websites offering currency converters are less than honest. For example on the website qarchive a key logger was found. Once installed a keylogger records every keystroke and is used to steal passwords, banking information, and any other personal information that could be used for nefarious purposes.

Beware of Malware

On many sites offering free ‘shareware’ Trojans and other malware are routinely downloaded with currency converters. It is common for malware to be bundled with a legitimate download. On one file sharing website offering a free currency converter the notorious winantivirus program was found. This program is capable of crippling a computer in 24 hours rendering it useless. The purveyors of this malware are currently being prosecuted by the US Federal Trade Commission.

Use Caution

Some shareware sited offering free currency converters will download programs that will hijack the browser, change the homepage, and add tools and modify toolbars with the consent of the user. It is highly recommended that those seeking a free online currency converter stick to well known brands and avoid free file sharing websites.

Mobile Technology and Internet Access

There are several companies that provide currency converters for mobile devices. The use of cell phones has become endemic in areas with mobile service. Smart phones and Blackberries allow the user to access the internet and perform almost any action. Most of the world has been quick to adopt mobile technology and mobile devices have changed the way people communicate and do business.

WorldMate Live Currency Converter For Blackberry

In previous articles we have pointed out the various uses of cellular devices and specifically currency converters. Mobile currency converters allow the user to calculate transactions in most currencies. For Blackberry users WorldMatelive offers a free currency conversion application. The WorldMateLive currency converter can be accessed at App World and takes about 10 minutes to download. After the download WorldMate Live takes about 3 minutes to install. The currency converter has the capability to calculate transactions in 160 world currencies. WorldMate Live also provides global weather reports, comparison charts for clothing sizes, and an itinerary organizer.

WorldMate Live for Other Phones

In addition to the Blackberry application WorldMate Live also provides a similar currency converter for the following phones; Samsung Blackjack, Motorola Q, or a PDA with windows mobile software. The application is free and can be accessed at worldmate.com and takes about 10 minutes to download.

The aCurrency Converter

For those with a T Mobile phone the aCurrency currency converter is available for download from the Android Market. This currency converter covers 160 currencies. Every time the currency converter is opened it automatically updates the latest currency exchange rates.

The ACT Currency Converter

For iPhone users the ACT Currency global currency converter is available from the iTunes App Store. This currency converter covers 190 currencies and is updated by hitting the refresh button. The ATC currency converter costs $1 which is exceptionally inexpensive.

While these currency converters are designed with the tourist in mind they could easily be of use to currency traders who need to check currency exchange rates often throughout the day and may not have immediate access to a computer.

Currency Converters and E Business

Currency converters serve many purposes. Travelers find currency converters invaluable when calculating transactions in foreign currencies. Business that engage in international trade use currency converters to keep a sharp eye on currency exchange rates which can easily mean increased or diminished profits. E-merchants could easily find their business opportunities limited without the use of a currency converter. Currency or Forex traders find a currency converter to be an absolute necessity.

Many Currency Converters Available Online

There are many reliable currency converters available online for free. No matter how sophisticated the converter is the basic function remains the same; to convert one currency into another. Most online currency converters use drop down manus with lists of the currencies to be converted. For those who do not always have a computer handy there are currency converters that can be downloaded to mobile devices such as a blackberry or cell phone.

Finding the Right Currency Converter

One of the best ways to find a currency converter to suit the individual needs of the user is to read reviews of the various currency converters available. For the tourist just about any basic currency converter will do but for those engaged in specific businesses there are websites that feature reviews of the various currency converters available. A currency trader would obviously want to find a currency converter that goes well beyond basic functions.

Varying Degrees of Sophistication

Many of the more sophisticated currency converters require the user to download software and typically these currency converters have many features that can be customized through the various widgets available. For the e-merchant there are currency converters that can be placed on the merchant’s website for the convenience of foreign customers.

Global Business and Currency Converters

As has been pointed out the internet has changed the way businesses operate and those who lag behind are sure to be left behind. The global scope of e-business has made a reliable currency converter essential for the successful businesses person or currency trader.

Currency Exchange Rates Affect Profit and Loss

The internet has taken business to a whole new level. Since the internet is global in scope entrepreneurs are often faced with problems that present themselves when doing business internationally. The e-businessman is more than likely to encounter foreign currencies and the difficulties currency conversion presents. Currency exchange rates can have a great effect on profit and loss for e-businesses.

Many Currency Converters Available

A working knowledge of currency exchange rates and how they affect e-business is essential. Online merchants who limit themselves to one currency are bound to lose business in an international market. Fortunately there are many online currency converters available for the e-merchant.

Inline Currency Converters

There are inline currency converters which can be placed on a website that will automatically display prices in international currencies. This enables the out of country customer to see product prices in their home currency. There are online currency converters available that automatically detect where the site visitor is located and display prices in the local currency.

Keeping it Simple

The real benefit of these types of currency converters is that they are designed for customer convenience and require no action on the part of the customer. Other online currency converters available include pop up currency converters. These are typically a hyperlink to a third party site where a customer can manually calculate currency exchange rates. Usually these currency converters require several actions on the part of the customer and can lead to frustration and loss of business. When it comes to currency converters the simpler for the customer the better.

Online Payment Providers

Most credit card and e-payment services provide currency conversion services. Examples of these would include PayPal and Net Teller. A well designed and easy to use currency converter is absolutely essential for online merchants doing business in several countries. A user friendly currency converter can be the difference between success and failure for a forex trader.