When the currency of the world's largest and strongest economy looses ground rapidly, then it's a cause for concern. How grave is the situation? It is difficult to assess now as there is no clear long term trend yet and with some luck it may just be the much awaited correction in the value of the US dollar. At the moment, like every other market, base metals are nervous and another sudden and steep fall in US dollar will almost certainly hurt base metals prices. Being an optimist, my personal opinion is that although the US dollar will be under pressure for remaining part of this year, it is unlikely to collapse. Under such a scenario we are looking at higher base metals prices in next 6-12 months.
NSTL
