U.S. Dollar: Spot Rates and Forward Rates
ISTANBUL -- Finance ministers from the Group of Seven rich countries face concerns over the future of the U.S. dollar as they meet Saturday in a forum whose role is increasingly in question. the finance ministers, who will be joined by their central bankers, have a number of issues to discuss as the world economy begins a slow recovery from the deepest recession since World War II.
Chief among these is likely to be the dollar, which has been falling in foreign exchange markets in recent weeks and months. In recent days, it sank to an eight month low against the yen, which nearly hit a year-high against the dollar, prompting concerns that a dollar crisis could bring the world recovery to a grinding halt.
MP: The chart above shows the current spot rates and one-year forward rates for the US dollar versus 16 major currencies (see full list of ex-rate quotes here). According to the one-year forward rates, the U.S. dollar is selling at a one-year forward premium versus all of the currencies listed except the Swedish krona and Swiss franc, and is even selling at a slight 0.10% premium against both the pound and euro.
Update: Thanks to Morganovich and HappyJuggler0 for pointing out that we can't necessarily use forward ex-rates to accurately infer anything about the future value of the dollar. I've re-titled the post and removed my comments about the stability of the U.S. dollar. Mea cupla.