US Forex Market is the main market of foreign exchanges in the entire world. The exchange rates associated with US dollars with other important currencies are entirely dependent on the market factors and the rate is not pegged in any way.
All the activities associated with the foreign exchange of USForex Market are controlled by the Federal Reserve Bank of New York, USA. All the current developments taking place in the financial market around the world are monitored and analyzed by the federal reserve Bank. In addition, one of the most important work of this bank is the maintenance and management of the foreign currency reserve of the United States of America.
In the US Forex Market, the role played by the Federal Reserve Bank in the transaction of the foreign currencies is very important. The bank helps the transactors of the US Forex Market to execute the buy and sell orders of theforeign currencies.
Conventionally, the exchange rates between Dollar and Euro is depicted as Euro-Dollar which signifies the rate of exchange of Dollars in respect to Euro. If we observe a hike in the rate of Euro-Dollar then it is evident that there is a depreciation of dollar in respect to Euro.
Conversely, the exchange rate between the Dollar and Yen is represented as Dollar-Yen indicating the value of yen in respect to Dollar. If we observe a hike in the rate of Dollar-Yen then it is evident that there is a appreciation of dollar in respect to Yen.
Some of the latest news regarding US Forex Market shows that the average daily volume in the concerned Forex market on April 2007 (including all types of spot and derivative transactions) has crossed the 600 billion dollar mark and the reported percentage increase is the same from last year’s. October has been just under 16%. On a year-to-year basis, the increase in the daily volume of the forex market has been reported to be 6.6% as on April 2007.