Churning out the biggest plunge in months, the dollar dropped against the euro and the yen yesterday, as investors dumped US currency amid falling interest rates.
All in all, the euro went up 1.7% against the dollar, while the dollar dropped 1.8% on the yen. The news comes on the heels of the Bank of Japan’s surprising negative interest rate move, an interesting development, experts say.
“The dollar tumbling today is hard to understand within a framework of how global economies operate,” Harvard economist Ray Torto tells Bisnow. “So the only explanation is some intense jitters in the market. I do not expect this trend to continue.”
Last February, a historic dollar gain against the euro triggered a selling spree among European investors who literally cashed in on the overnight value appreciation.
Richard Nassimi of the Nassimi Group, a luxury real estate firm that works with international investors, says the dollar’s drop won't stop that trend. At least not as long as the price per SF remains high.
“They’re cashing in on their investment, putting their assets on the market one by one,” Richard tells Bisnow. He explains that many foreign investors bought in during the recession, leaving big room for profits—dollar drop notwithstanding. “They’re hitting it right on the spot," he says.
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