On April 8, 2011, the US dollar went down to 75.009, versus the currencies of six major US partners. This is the lowest rate of the dollar since December 2009. It was the consequence of the damped unenthusiastic demand of the currency by a number of raw materials and also due to the disagreement among policy maker about the budget.
In November 2009, the US dollar witnessed the record low of $1.33 to the Euro at the end of the month. There were signs at this time that foreign central banks that have done heavy investment in treasuries in the US as well as in other type of debts were thinking of shifting apart of their funds out of financial markets of the US. In addition to this, the US dollar also had record four-and-a-half year low against the yen, a nine-year record low against the Swiss franc, a twelve-year record low against the Canadian dollar and record low of sixteen-year against the New Zealand dollar. As it was not sufficient, the increasing failure of trust in the US dollar also resulted in a 16-year high gold price which was $455.
The lawmakers in the US Congress were not able to reach at mutual decision regarding the federal budget which could easily led to the first blackout of the government for the first time in 15 years. Consequently, the US dollar while tracking other competent currencies fell down to the lowest rate since 2009. the another reason behind the stumbling of the US dollar was the speculation that central banks of the developed countries will be tracked by the Federal Reserve in the matter of raising interest rates.
On the other side, the global economies showing the signs of recovery as the commodities in the world market continue to advance and thus attractiveness towards growth related currencies has increased. The rise of 1.1% is seen in the Thomson Reuters/Jefferies CRB index while the growth rate of 1.6% was noticed in the German industrial production in February though it was expected to grow just by 0.6%.