Euro-Dollar Circulation Competition Increases Oil Prices

Euro-Dollar circulation competition

New Delhi (ABC Live): The Down wards trend in world's economy has shaken the confidence of investors. Now they are searching for new avenues to make money.

New Delhi (ABC Live): The Downwards trend in economy world wide has shaken the confidence of investors. Now they are searching for new avenues to make money.

After Gold now investor are opting for oil the recent enhancement in its prices shows this trend. On Monday the price of oil has reached on the record level of $ 107 a barrel.

This enhancement of oil prices in international market becomes signifying keeping in mind the last week decision by oil association producing countries (OPEC) which decided not to increase price.

In currency market value of dollar is falling against all currencies so global investors look other means to hold their worth.

As gold is not able to coping up with amount of cash flow in markets to change value of holding from hard currency to precious metal so oil (Black Gold) is serving a mode to invest on.

It is here to mention that value of US currency and price of oil are interlinked issues for long.

Above table shows dollar and oil price linkage. This confirms that USD holders in international market are least loser in both situations.

The real suffers are developing economies of those absorb the loss by ways of interchanging holding from hard currency to hard valued energy, the oil.

The Euro-dollar circulation competition has some unseen role international market behaviors as earlier to Euro as international accredited currency USD was the only currency in use internationally but now Euro has surpass the dollar in circulations just in two years of its introduction as trans nationals currency.

A senior international economical advisor told ABC Live that Euro-dollar tussles has potential to make global economical affairs unpredictable in coming years as holders of both currencies are taking and replacing their positions in this transit period.

The oil and other hard earn matters are going to be on their agenda.