The Dollar Is Rising

The American currency is rising all over the world

The US dollar is rising now in Russia - for the first time since February. Today the American currency's exchange rate has surpassed the level of 30.7 rubles to the dollar. Experts connect the dollar growth with the currency deficit on the market. PRAVDA.Ru has  reported earlier Russian banks tried to get rid of excess US dollars In any way they could. Ninety percent of the dollars were reportedly taken out of the country. For this reason, there is nothing surprising in the fact that rates have started growing because of a lack of dollars. In addition, banks did not want to sell the American currency at such a low rate.

The weighted average dollar rate gained 3.24 kopecks on the Moscow Inter-Bank Currency Exchange (MICEX) on Thursday. Now, a dollar costs 30.74 rubles.

The dollar is rising not only in Russia, but all over the world as well, especially in Asia. Despite the reduction in the value of the American currency, the Asian business world did not hurry to get rid of the dollar. Asian basic stock indexes continued growing today. In Japan, the increase of the dollar rate against the yen resulted in investors' growing demand on the stocks of such giant companies as Sony, Canon and Matsushita). In addition, market players have become more optimistic about the news. Sony, for example, announced its intention to produce a new-generation game console - a combination of a PlayStation2 and modern household electronic appliances. Furthermore, spokespeople for the company announced a plan to increase the company's profitability by up to ten percent by 2006.

The South Korean kospi has also increased in value today, following the stocks of the country's fourth largest financial and industrial group SK Group (SK Telecom, SK Corp, SK Global and others). The reason why is simple: SK Global Co. (the sales department) creditors said that they were ready to give the group an opportunity to sell SK Global Co. assets. Creditors believe that this measure will help to considerably reduce the financial pressure on the whole group.

Experts do not have a common opinion on the further fate of the US dollar. However, Asian countries' attachment to the American currency gives hope that the dollar has survived its worst times, and that its growth will make the American economy rise together with those of all other countries.

Author`s name Olga Savka