Forecast on Major Currencies and Analysis of the Consequences on Danone

Groupe DANONE Index Part 1 : Forecasts on currencies A) THE AMERICAN DOLLAR B) THE CHINESE YUAN C) THE Japanese YEN D) THE ZIMBABWE DOLLAR E) THE THAI BAHT 1.Part 2 : Danone A) Presentation of Danone B) Opportunities for Danone Sources Part 1 : Forecasts on currencies represent 1: Currency Evolution world-class semester 2008 A) THE AMERICAN DOLLAR Graph 2: Exhange rate Euro/Dollar (last 5 years) US Dollar appears nowadays to be one of the nearly unstable capital on the market. That is why it makes all decisions -based on US$ perspective- risky. By the way, some indicators can serve well for draft trends in its variation. First of all, if we look at the evolution of the currency during the last 5 years (Graph2), we can see that the Euros nourish is increasing against the dollar values. However, if we choose shorter terms to invest a future trend, and so, by looking at the aside years and the 3 last months evolutions, we nonice that the Dollar is beef up recently (Graph3&4). With the actual crisis, both financial and economic, a prohibit in the US dollar downfall is hard to imagine.

Graph 3: Exhange rate Euro/Dollar (2008) Interest Rates: To help the dollar to strengthen, US could raise interest rates aggressively. Indeed, this would pick out as consequence a diminution of the quantity of dollars, that is not favorable for financial firms that are facing big problems of liquidity. Thus, the provide will not hike the rates even if the flash continues to rise because the financial stability is a higher priority. Consequently, the ply started a year ago to cut interest rates, button the federal funds rate down from 5.25 percent to 2 percent. Concerns: The crisis is flooding over the world market because US$ use to be a benchmark value and appears now to be unstable and too weak to stand the world pressure. A lot of concerns are raising because a weak... If you want to number a full essay, order it on our website: Orderessay

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