Six Strong Currencies Valued Against the U.S. Dollar in 2016.
The federal fund's rate has moved up to 0.25% and this is a sign that there is future growth in the strength of the dollar. Currently, the USD has the strongest rate of exchange after the decline of the Euro in the past few years. The USD has also made more gains against the Yen and Yuan. The Euro is at the moment comparatively stronger to the dollar, and Euro’s fluctuations reveal its instability, and so far only six nations have a stronger currency than the USD as of 2016.
Early 2016, the dollar to the Euro exchange rate stood at an average rate of 0.92 Euros per $1USD. The Euro shifted from its strong position to a weak position in January when a single USD was equal to 0.86 Euros. In November, this rate moved up to 0.93 Euros. The Euro further weakened in 2014 when the rate moved from the 70s to 80s. The weak Euro-zone currency is linked to the economic challenges that the European Union faces, which include a decline in the GDP growth, and slow financial growth. The monetary policy of the Euro shows that the state of the Euro is highly likely to be on the low end in the entire 2016.
The British Pound
There has been no rise in the interest rates by the Bank of England for about half a decade. The UK is keeping the interest rate low so as to foster lending activities that will encourage growth. There have been various miscalculated forecasts on the Sterling Pound’s changes, which have resulted from inconsistent moves and announcements from policymakers. The Sterling Pound has often been stronger than the USD. The USD continues to be circulated in the Eurozone and its helps in supporting the economy of England. Currently, one USD exchanges for 0.69 GBP.
The Bahraini Dinar
The Bahraini dinar is among the top valuable currencies, and the currency faces similar stiff competition from the Kuwaiti dinar because their titles are similar. The yearly average of the currency has stagnated at 1 cent of its current rate of exchange since 2011 in spite of the significant impact that declining oil prices have had on Bahrain’s economy. The rate of inflation in Bahrain’s economy has declined by 0.7% between the 2014 and 2015 time. Bahrain’s domestic credit stock stood at $24.16 billion USD by early 2015, but the nation’s sovereign debt rate is at the moment above the junk status. The rate of exchange of the USD to the BHD is at 1 USD to 0.37 BHD.
The Kuwaiti dinar is denoted by the KWD currency code and it is the official currency of Kuwait. The small country of Kuwait has rich oil and gas deposits, which make its currency one of the most valuable currencies on a global scale. The export of oil and gas products provides 94% of Kuwait’s revenues. The nation’s GDP stands at $123.2 billion and its per capita GDP for 2015 stood at 72200. The currency had an even higher value in 2015, but a low ease and account deficit in business, which has adversely affected the nation’s economy. The current exchange rate of the USD to the Kuwaiti dinar stands at 1 USD to 0.39 KWD.
The Lat is the official currency of Latvia, and it is one of the most stable currencies, which has not experienced many fluctuations in the past few years. The Lat had a spread of 4 cents in consecutive years, and this reaffirms the nation’s monetary management system aimed at enhancing stability. The currency has increased in strength after 10 years of moving out of an economic challenge that took place in the 90s. The Euro and the Lat are used in tandem within the nation because Latvia is part of the European Union. Currently, 1 USD exchanges for 0.62 Latvian Lats.
The Omani Rial
The state of Oman currently experiences a low rate of inflation that stands at 1%. The currency is strong against the USD because of a strict monetary control of policy and the nation’s financial restrictions. The state’s policymakers have created restrictions on the supply of money to protect the nation against conflict and war in the Middle Eastern region. This standing has affected the nation’s rate of inflation and practices of lending, which favor business ventures and companies that are risk averse. At the present, 1 USD exchanges for 0.38 Omani Rial.