What do you look for in this crazy world of finance? When it comes right down to it, it is a country's currency that is the best indicator to the question: "How am I doing?"
Let's see how the currency markets around the world are doing. The dollar is still king. It moved to its highest level since 2006. This is an indication that with all the troubles the U.S. is having, the U.S. is still the strongest economy in the world and the U.S. dollar is still the currency most prized throughout the world.
Next comes Japan, the world's second largest economy. Japan's economy is spiraling downward rapidly. Its economy shrank by a whopping 12.7% last quarter. So it is no wonder that the yen has been falling for six straight weeks. The yen lost 6.3% against the dollar, 1.5% to 84.83 US vs. the Swiss Franc.
Moving on to Britain, where banks are in shambles, we see the pound to falling for two straight weeks. The Sterling depreciated 27% against the dollar last year and 23% against the euro.
The New Zealand dollar fell 0.3% to 50.26 US cents.
South Africa is in a state of extreme turmoil and the South African rand fell 3% vs the dollar to 10.4334 in just one week.
So if we look at the hot spots in the financial crisis, we also see that their currencies are reflecting this turmoil.
Would you buy the U.S. dollar?
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For a quick-read on the U.S. economy, check the price of gasoline
