Posted: Jul/28/09s
With currency markets in turmoil recently I wanted to quickly draw a comparison of currency fluctuations for Serbian Dinar as it compares to US dollar. I’ve picked April 1st as a start day as the data source (OANDA) allows data pull for the last 500 days only.
Anyhow, I’ve marked four points on the chart: A, B, C, D as they seem to appear as inflection points and are connected to significant events in the global markets.
A – corresponds to the onset of the great Wall street panic (late Sept / early Oct) triggered by the collapse of Lehman brothers and implosion of the global financial sector – in short, the investors lost confidence and were seeking refuge in USD, hence a significant jump in the value of USD.
B – with the arrival of President Obama to the White house and an instant promise of large dollar denominated stimulus the money started to flee from USD into alternative currencies. US treasury announces possibility of printing additional money supply – the investors did not like that at all and USD got hammered… RSD piggybacked along Euro and went up in value.
C – As things started to stabilize USD regained lost ground and remained stable thru early March. The weakness in other financial markets (Euro/Asia) further assisted the greenback here, RSD dropped accordingly.
D – As China and Russia decreased their purchases of US Treasury bonds demand for the greenback declined which resulted in a gradual slide ever since. RSD is again following it’s big Euro brother…
Just my 2c… Cheer up...
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