The U.S. Dollar Has Hit a One-Month Low Amidst a Recession
The dollar is trending downward after months of recent growth, but those losses could nevertheless provide an opportunity for forex investors.
The American Dollar Has Hit a One-Month Low
On Aug. 1, the U.S. dollar index was valued at 105.45. That value represents a 2.9% decrease from last month’s peak value of 108.54 and a low not seen since July 5.
Economists now say that the U.S. economy has entered a technical recession as the country’s Gross Domestic Product (GDP) has fallen over the past two quarters. Furthermore, some projections suggest that the country’s GDP could continue to shrink in the future.
Though a full recession would likely involve more severe losses and last for longer, the news suggests that the U.S. is struggling economically.
Other developments confirm that idea. Most notably, the U.S. Federal Reserve has recently hiked interest rates in an attempt to curb inflation. The latest increase occurred on Wednesday, July 3, and increased the benchmark interest rate by 0.75 percentage points for the second consecutive time.
Financial analysts told Business Insider that those increases are rapid. Within four months, the Federal Reserve increased interest rates to the same extent that they did during the multi-year period between 2015 and 2018.
It is unclear whether the U.S. dollar will continue to lose value long-term. Despite its one-month low, the dollar is still at its highest in two decades. But while that trend could point toward future growth, it could also mean that the U.S. dollar may not surpass its previous highs.
Losses are not necessarily bad for everyone, though, as investors can profit regardless of whether prices rise or fall. If the dollar value declines, investors may want to buy the asset at a discount. If the dollar's value increases, investors may choose to sell or spend the dollar at a profit.
Though investors must watch prices carefully to take advantage of these opportunities, it’s easier than ever to begin trading forex assets.
At Payset, we offer simple access to the foreign exchange market. We provide international bank accounts with IBAN numbers, a rapid currency exchange, and the ability to hold multiple currencies at once.
Contact us today to find out more or to open an account.
Frequently asked questions
What is a multi-currency account/virtual IBAN?
A Payset multi-currency account allows you to receive money in 34 different currencies and send money in up to 38 currencies, all within the same account.
You can deposit and withdraw funds, convert currencies at competitive exchange rates, and hold your chosen currencies to capitalize on market movements.
A Payset multi-currency account allows startups and business owners to receive payments from clients virtually anywhere in the world and pay suppliers, staff, and contractors quickly and affordably in their chosen currency.
- Funds can be deposited and withdrawn from the account for a small fee.
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- Once you register an account, you will be provided with a Virtual IBAN (International Bank Account Number), which makes all of these transfers easy.
- We provide you with local payments and collections. For example, transactions in USD, EUR, CAD, and GBP are processed through the local payment networks, which is far cheaper and takes minutes as opposed to days
Are there limits on the amount of money I can send and receive?
No, there are no transaction limits on Payset multi-currency accounts.
However, higher-volume transactions may require additional anti-fraud verification. If you plan to make a large transaction, contact us in advance to avoid verification delays.
How is Payset regulated?
Payset allows you to receive payments in 34 currencies. You can send payments from your account in 38 currencies. For more details, check our payment guide.
How do I add money to my account?
How do I send money from my account?
Once you have opened your verified IBAN account and added money to a balance, transferring funds is simple.
Simply log in into your account and add a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.
Types of Multi-Currency Accounts
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