Does Fed signaling higher interest rates signal Dollar Index rising?

Discussion in 'Forex' started by seldin, May 9, 2005.

  1. seldin


    I am new to Currencies, and have some questions on some assumptions that I have, that may be inaccurate.

    1) Since it has been the view that the Fed will keep on raising interest rates until some "neutral rate", doesn't that signal that the Dollar Index will have to rise.

    2) Even though, the U.S. has large debt, doesn't the Fed's intention of raising interest rates mean dollar index will rise.

    3) If the above statements are true, why would Buffet "long term investor" still want to short the Dollar.

    4) Can someone tell me the impact of U.S. Dollar on the Dollar Index. The reason I am asking, is that the Dollar Index is made up of several currencies and not just the U.S. Dollar.

    5) I am trading Futures Currencies rather than Forex. Where are the best sources, to share Intermarket Analysis ideas.

    6) Does Currencies section of this website include both Forex and Futures Currencies, when referring to Currencies.

    Can you please comment.

    Thanks much,