U.S. Dollar Continues Rally in FX Trading

October 1, 2008 by Trader Rich

Currency trading with the greenbackThe U.S. dollar rally is continuing in FX trading on the currency market today. Thanks to a rapidly spreading credit crisis that is proving that the eurozone is vulnerable too, it appears in currency trading that the greenback is poised to remain stronger.

There are questions, however, regarding how long the U.S. dollar can continue the rally when the fundamentals of the economy — especially if the bailout adds more to the national debt — are somewhat shaky.

ActionForex reports on the reasons behind currency trading support for the greenback:

In addition, the greenback is supported by concern that the credit crisis in the US is spreading quicker than expected to Europe. Four lenders were bailed out by governments in Europe this week. IMF chief Dominique Strauss-Kahn said that Europe needs to develop a version of their bailout plan for their own financial crisis.