The dollar and the euro are showing solid growth. Why is the euro and dollar growing in 2014?

The Russian ruble is losing ground, and the European and American currency continues to grow. Some financial analysts repeatedly warned about the fall of the ruble in March 2014 - after the Winter Olympics in Sochi. Other experts argued that the Olympic Games will increase and strengthen the Russian ruble.

To date, none of the forecasts have been confirmed. But the foreign currency continues to rise in price. Therefore, the question of why the euro and the dollar is growing this year is becoming more urgent.

Key Factors

The American currency is growing rapidly, not wanting to lag behind its main rival - the euro. This growth is due to two factors:

• The price of oil went to the horizontal corridor ("flat");
• The single European currency took the position of an indefinite fall.

Oil has always played a key role in fluctuating exchange rates. This year, Iran said it could block the Strait of Hormuz. This led to a sharp increase in quotations. And although after a few days the "American" fell sharply, on the third day the currency steadily rushed up.

The indefinite fall of the European currency helps to increase the dollar. To find out the reasons for the growth of the euro and the dollar, you should pay attention to the actions of Germany. German politicians seek to negotiate a larger volume of cuts in state, social, and economic costs from neighboring states. This leads to financial uncertainty - the eurozone is constantly on the verge of default, which is skillfully balanced.

In addition, this year Russia has expanded the borders of the currency corridor, because of which traders began to rapidly convert Russian rubles into dollars and euros.

Crimean conflict

The Russian ruble is giving up its positions because of the conflict in the Crimea and the growing geopolitical risks on this ground. The behavior of Russia explains why the euro and the dollar are growing against the Russian ruble.

On March 1, 2014, the Federation Council permitted the deployment of Russian troops to Ukraine. Stock markets responded to this by a sharp fall in the ruble against the European and American currency.

Not so long ago in Russia, the CBA rate increased. The Deputy Minister of Economic Development of the Russian Federation assures that such actions are undertaken by the state in order to contain the rapid decline of the Russian ruble. However, as such an increase will affect the economic growth of the country, while no one comments.

What provokes the growth of the dollar and the euro?

To understand why the euro and the dollar are growing in January 2014 Year, the political and economic situation in the world for 2013 should be analyzed.

1. Last year, the US experienced a strong economic growth.
2. Obama agreed not to introduce troops into the territory of Syria.
3. The funds invested by Russia in the 2014 Olympics in Sochi have not justified themselves.
4. In late 2013, the Central Bank began to massively revoke licenses from major Russian banks. This led to the closure of numerous deposits in Russian rubles.
5. The CBR said that it will not support the ruble exchange rate in 2014.

If you evaluate these factors in aggregate, you can understand why the euro and the dollar are growing, and the Russian ruble is falling.

Financial forecasts

Analysts make contradictory forecasts about the position of the Russian ruble this year. Most of them agree that its rate will depend on the prices of oil and gas. Now the cost of oil reaches its maximum, but by the end of the year it should fall. This will necessarily affect the rate of the dollar, the euro and the Russian ruble.

But NATO and Europe continue to threaten Russia with economic sanctions. Such actions explain why the euro and the dollar are growing. 2014 is not easy for Russia, both economically and politically. The country is increasingly threatened with an exit from the G-8. And if this happens, it will be difficult for the Russian ruble to hold its positions against the European and American currency.

Who is stronger: the dollar or the euro?

American analysts and experts make positive forecasts about their currency, but they are skeptical about the euro. However, the two leading currencies are undergoing a crisis.

The question of why the euro and the dollar is growing is inappropriate for America and Europe. Here there is a decrease in the value of hard currency (freely convertible currency).

In the US, more can be heard about the impending systemic crisis, although the president promulgated a new program to combat unemployment. Obama believes that this will help shift important economic processes from a dead end.

Eurocurrency is pulled to the bottom by Greece and Portugal, economic problems in Spain and other countries of the eurozone.

Alan Greenspan - the former head of the Federal Reserve System of the USA - believes that the euro has no future. The politician believes that the euro area will not be able to withstand financial strikes and will soon fall apart. But such an outcome of events will negatively affect the US economy, because large US companies are closely related to the European market.

In addition, there is an increase in gold prices in the world, which also leads to turmoil in the dollar / euro pair.