Dollar forwards snapped up

Currency brokers FC Exchange experienced a brief surge in the numbers of people buying Dollar forwards demonstrating they expect the low created by the collapse of Lehman brothers’ bank to be short-lived.

“People are speculating that the current dollar lows will not last even though experts expect more bad economic news on the horizon,” said Nick Fullerton, MD of FC Exchange. “They are taking advantage of any spikes in currency value and numbers are up by 15%.”

“Those needing dollars in the short term are taking advantage of the blip caused by the collapse of the world’s fourth largest investment bank to freeze exchange rates. They are demonstrating a sophisticated grasp of the markets and economics by backing a swift Dollar revival.”

Experts predict the Dollar will make a comeback in the short to medium term after the fed held interest rates. Sterling on the other hand is expected suffer further as the likelihood of the Bank of England cutting interest rates to stimulate the stagnating economy increases despite the latest Monetary Policy Committee minutes revealing an eight to one vote to hold rates in September.

Given the latest domestic news concerning Lloyds and HBOS the future of Sterling is becoming increasingly uncertain.

Buying a forward contract enables you to freeze currency exchange rates at these favourable levels for up to two years by paying 10% deposit.