The Dollar is Having a Lackluster October
In overseas markets, trading was mixed. Asia had a good day, with Japan’s Nikkei rising 298 points and closing at 18,438.67. Australia’s ASX fell by 42 points, and Hong Kong’s hang Seng rose by 272 points today. In Europe, markets were mixed as well. London’s FTSE fell by 45 points in trading today.
The Dollar is Having a Lackluster OctoberEven compared to other currencies, the dollar is having a tough month so far. The recent losses come despite a dollar that has surged against foreign currencies earlier in the year. However, all good things must come to an end, and it looks like the dollar’s rally is going from boom to bust. Just this month, the dollar has lost 1.5% against the UK pound and the Euro.
One major reason for the dollar’s slide is continued inaction from the Fed. The Federal Reserve has more power over the value of the dollar than nearly any other agency or organization. It controls how much money gets printed, and sets interest rates that determine the relative worth of the dollar in day to day transactions. For instance, the Fed controls the prime interest rates, which determine mortgage prices and the cost of car loans.
Another reason that the dollar is weaker is the relative growth of some emerging markets. Markets in Indonesia and Brazil are both booming, and that means that they’re currencies are stronger. It all adds up to a dollar that’s weaker on the international stage, which means cheaper exports from America and more expensive imports.
Eli Lily (LLY) Down Big on Failed Cancer DrugShares of Eli Lily (LLY) were down big today after news broke that its most recent cancer drug was a bust. The medication failed in the trial phase, and cost the company hundreds of millions of dollars in a failed investment of time and money. Shares of Eli Lily fell by nearly 8% today, shedding 6.70 points to close out the trading day at $79.44 per share.
Published on Oct 12, 2015By Aaron Phillips