Currency United States Dollar (USD) :

The US dollar LIBOR interest rate serves as a base rate for all sorts of other products such as savings accounts, mortgages and loans. Chart last year

Source: http://www.global-rates.com/interest-rates/libor/american-dollar/usd-libor-interestrate-6-months.aspx

The 6 month US Dollar (USD) LIBOR interest rate is the average interest rate at which a selection of banks in London are prepared to lend to one another in American dollars with a maturity of 6 months Approximately two-thirds of US dollars are held outside of the United States. Because of the strength and relative stability of the US economy, the US dollar is the currency most used in international transactions and national currency reserves. In addition, various countries use USD as their official currency, while others use it as a de facto currency.

Future Outlook: The status of US Dollar as the de facto currency in the world and a mode of investment for various countries is under threat and the situation continues to grow from bad to worse. Low Interest Rates making it unattractive for investors Downgrade of Sovereign Credit Rating to AA+ Fiscal deficit weakening the dollar further and further Demand for a global currency gaining momentum Pro Euro Government in Greece giving impetus to the Euro

However, US Dollar still continues to be the first place of investment but it is under pressure and if factors dont change, the dollar will continue falling against the Euro and pound (the other safe haven currencies)

Euro

Chart last year

Source : http://www.global-rates.com/interest-rates/libor/european-euro/eur-libor-interestrate-6-months.aspx The Euro (EUR) is the official currency of the European Union (EU). The Euro was introduced in 1999 as an implementation of the Maastricht Treaty of 1992. Fifteen member states of the EU have adopted the Euro, while eleven non-EU countries also use the currency. However, there are notable countries that have not adopted the Euro, including the UK, Sweden and Denmark, which are EU members; and Switzerland, which is not an EU member. The Euro has appreciated in value, as has the EU economy. In terms of GDP, the EU became the worlds largest economy in 2007, with the appreciation of the Euro. The Euro is also the most widely circulated currency in the world, having taken this position from the US dollar. By mid-2008, the value of Euros in circulation had reached approximately $1 trillion, compared to $833 billion US dollars.

Future Outlook Experts are optimistic about the future of the Euro. With no end in sight for US economic problems, and the considerable gap between EU productivity compared to other leading and developing economies, the Euro will continue to climb. The election of a pro Euro Government also adds to the cause.

The following are the hurdles that the currency will face in the future and if not addressed, the euro will slide as the investors will go back to the US Dollar. Debt Crisis in Spain and the continuously unstable yields on their bonds Consumer inflation and remaining flat for the euro zone in recent months showing a stumble in growth Industrial production falling in April Falling interest rates

This is a period of uncertainty and it will be best to take decisions on the two currencies for investment opportunities after weighing the pros and cons at hand.