The Sun Never Sets on Forex

Because of its tremendous power in local life, currency rates are regularly monitored all over the world. Outside the U.S., people watch exchange rates like Americans follow the Dow. In Sri Lanka, taxi drivers can reel off exchange rates as well as New York’s foreign exchange desk dealers.

Americans may soon have to as well. As the world becomes

more interconnected, the traditional stability Americans have

enjoyed from their currency may be eroded. The newly introduced

euro might ultimately supersede the U.S. dollar. Many nations rely

on the U.S. dollar as a reserve currency, which helps sustain its value. If nations start using the euro for this role, the U.S. dollar

could be exposed to unprecedented fluctuation. In the fall of 2004, with the U.S. Congress issuing $800 billion in new debt, the market began to question the U.S.’s “risk-free” status, opening the window for other currencies to fill this void.

The Sun Never Sets on Forex

I learned these lessons long before I began to trade currencies myself. They were the result of my travels, when I saw firsthand the role of currencies and their potential for trading. One of the strongest impressions I received was in Thailand in 1999.