The Iraqi dinar hit near a new high today, trading at 1260 to the US dollar or $793.65 per million dinars. Note that the dinar has increased in value from 1470/US dollar, when I started tracking it on 10/9/05 — about a 17% increase. With all the bad news, why is the dinar going up? What are the currency markets telling us? Could it be that traders see Bush’s troops surge in and around Baghdad as destined to succeed? There are signs of growing dissatisfaction among Iraq’s Sunnis with the mostly-Sunni al-Qaeda. Some of Baghdad’s Sunnis have started fighting against al-Qaeda terrorists. While these Sunnis insist on doing so without U.S. help, others in Anbar province have allied themselves with American forces and the Iraqi army.
Whatever the reason for the dinar’s rise, I learned long ago to take into account economic indicators when evaluating political and societal conditions.
http://netwmd.com/blog/2007/06/05/1751
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment