Russian ruble is losing ground, and European and American currency continues to rise.Some financial analysts have been warning about the fall of the ruble in March 2014 - at the end of the Winter Olympics in Sochi.Other experts argued that the Olympic Games will improve and strengthen the Russian ruble.
To date, none of the predictions was not confirmed.But the foreign currency continues to rise in price.Therefore, the question of why the growing euro and dollar in the current year, is becoming increasingly important.
main factors
US currency is growing rapidly, not to be outdone by its main competitor - the euro.This growth is due to two factors:
- oil prices moved in a horizontal corridor ("flat is");
- single European currency has taken a position of perpetual fall.
Oil has always occupied a key position in currency fluctuations.This year, Iran said it may block the Strait of Hormuz.This led to a sharp increase in prices.Although a few days "American" fell sharply for the third day the currency steadily fixed up.
indefinite drop in the euro increases the dollar.To find out the reasons for the growth of the euro and the dollar, should pay attention to the actions of Germany.German politicians seeking to negotiate a greater volume reductions in public, social and economic costs of the neighboring states.This leads to financial uncertainty - the euro zone is constantly on the verge of default, which is skilfully balanced.
In addition, this year Russia has expanded the boundaries of the currency corridor, which is why traders began to rapidly convert the Russian rubles into dollars and euros.
Crimean conflict
Russian ruble is losing ground because of the conflict in the Crimea and the increase on this basis of geopolitical risks.Russia's behavior explains why rising euro and the dollar against the Russian ruble.
March 1, 2014 Council of the Federation to Ukraine allowed to enter the Russian troops.Stock markets responded with a sharp drop in the ruble against the euro and the US dollar.
Not so long ago in Russia has increased the rate of the Central Bank.Deputy Minister of Economic Development says that the action taken by the state to curb the rapid decline of the Russian ruble.However, how this increase will affect the economic growth of the country has no comments.
What provokes a rise in the dollar and the euro?
To understand why rising euro and the dollar in January 2014 year should analyze the political and economic situation in the world in 2013.
- Last year in the US there has been strong economic growth.
- Obama agreed not to send troops to Syria.
- funds invested in the Russian Olympics in Sochi in 2014, did not justify itself.
- In late 2013 the central bank began to massively withdraw the licenses of major Russian banks.This has led to the closure of numerous deposits in Russian rubles.
- CBR said that he would not support the ruble in 2014.
If we estimate these factors together, we can understand why rising euro and the dollar and the Russian ruble falls.
Financial Analysts forecasts
make contradictory predictions about the position of the Russian ruble this year.The majority of them concurs that its rate will depend on the price of oil and gas.Now the price of oil reaches the maximum level, but by the end of the year it should fall.This is sure to affect the dollar, euro and Russian ruble.
But NATO and Europe continue to threaten Russian economic sanctions.These actions explain why rising euro and the dollar.2014 difficult for Russia both in economic and political terms.The country is increasingly threatened by the release of the "Big Eight".And if that happens, the Russian ruble will be hard to maintain its position in relation to European and American currency.
Who is stronger: the dollar or the euro?
US analysts and experts make positive predictions about its currency, but the euro skeptical.However, the two predominating currency in a crisis.
question about why the euro and the dollar is growing, is inappropriate for the United States and Europe.There decrease the cost of foreign currency (hard currency).
In the United States you can hear more about the impending systemic crisis, although the president unveiled a new program to combat unemployment.Obama believes that it will help to move the major economic processes in motion.
Eurocurrency the bottom pulled Greece, Portugal, the economic problems in Spain and other euro zone countries.
Alan Greenspan - the former head of the US Federal Reserve - believes that the euro has no future.The politician believes that the eurozone will not be able to withstand financial shocks and will soon fall apart.But such an outcome will negatively affect the US economy, because large US companies are closely linked with the European market.
In addition, the world has witnessed an increase in the price of gold, which also leads to turmoil in the pair dollar / euro.
