Dollar Hits 37-Year Low, Well Done BushCO

[LoungeMachine]

Dollar sinks to new low against euro amid expectations of another US rate cut

The Associated Press
Published: October 29, 2007



NEW YORK: The dollar descended to new long-term lows Monday against several widely traded counterparts, including the euro and Canadian dollar, as investors pondered the likelihood of a reduction in benchmark U.S. interest rates.

Ahead of the decision Wednesday by the rate-setting Federal Open Market Committee, the greenback stayed mostly range-bound in New York trading, although those ranges were in record-low territory.

The euro hit an all-time high of $1.4439 during the overnight session, while the greenback bottomed out in afternoon trading at C$0.9517 - its lowest level in 37 years.

Sterling traded at three-month highs against the greenback on news that consumer lending in the U.K. shot up to year-high levels, signaling that the recent slew of discouraging U.S. economic reports are primarily of U.S. concern. The pound remained within striking distance of the 26-year highs it reached in July.

The Australian dollar pressed to a fresh 23-year high at 0.9272, mainly on expectations the Reserve Bank of Australia will raise interest rates, said analysts.

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Late Monday afternoon in New York, the euro was at $1.4426 from $1.4390 late Friday, while the dollar was at 114.62 yen from Y114.23. The euro was at 165.35 yen from Y164.38. The U.K. pound was at $2.0630 from $2.0531, according to EBS. The dollar was quoted at 1.1644 Swiss francs from CHF1.1641.

Despite overall dollar weakness, the yen emerged as Monday's overall loser on a spike of risk appetite that followed a rise in global equities markets. The Dow Jones Industrial Average was up 63 points at the close of U.S. trading.

The Federal Reserve is expected to trim its benchmark rate from 4.75 percent to 4.50 percent. Some analysts even suggest the Fed may cut down to 4.25 percent. Low rates means lower returns for investors and tend to hurt the appeal of the dollar for investors.

Last month, the Fed cut interest rates by 50 basis points, its first reduction in more than four years, kicking the dollar on a fast slope down.

However, if the Fed is able to steer the U.S. from recession, "then interest rate cuts will ultimately benefit the (dollar)," said Mansoor Mohi-uddin, managing director of foreign exchange strategy at UBS in London.

The recent rise of risk appetite is unlikely to continue as global growth slows, he said. That will lead to greater demand for safe haven currencies, such as the dollar, which typically benefits from repatriation flows during periods of risk aversion.

But Steve Barrow, a foreign exchange analyst for Bear Stearns in London, says the Fed's decision isn't "particularly important."

"As far as we can see the die has already been cast for a much weaker dollar, and nothing is going to save it now," said Barrow.

The question at hand, he said, is when will officials attempt to do something about it.

In a speech in India Monday, Treasury Secretary Paulson didn't change his stance. He repeated the long-standing position that a strong dollar is in the U.S. interest and that currency values should be determined by market forces and be based on economic fundamentals.

A climb in oil future and gold prices also hurt the dollar. The strength of commodities helped the Canadian dollar advance towards its 37-year high Monday. The Canadian unit has appreciated a total 22 percent since the beginning of the year.

The Canadian dollar clambered to its peak level against the U.S. dollar since Ottawa unpegged the two currencies in May 1970. In midmorning trading, the greenback had dropped below its earlier post-1970 low of C$0.9576, registered in April 1974, and eventually reached a bottom of C$0.9517 in afternoon activity, according to EBS.

___

Riva Froymovich is a correspondent of Dow Jones Newswires.
http://www.iht.com/articles/ap/2007/10/29/business/NA-FIN-MKT-US-Dollar.php

[LoungeMachine]

Dollar woes ignite oil, gold to record levels
28 Oct, 2007, 0045 hrs IST, REUTERS




NEW YORK/LONDON: Oil lit up commodity markets for the second day running on Friday as US crude prices flared to new record highs above $92 a barrel on fresh world tensions that threatened supply. Higher energy costs aside, the US currency’s fall to a lifetime low against the euro also drove up inflation fears, which sent dollar-denominated commodities like gold, copper and corn higher.

“It looks like everyone wants to sell the dollar and buy other assets -- whatever assets, whether they be equities or commodities,” said Christoph Eibl, head of trading at Switzerland’s Tiberius Asset Management. The dollar plumbed a new bottom against other leading currencies as investors fretted that an expected US Federal Reserve interest rate cut next week would not be the last.

Lower interest rates dull the dollar’s yield appeal. A weaker US currency also makes dollar-priced commodities cheaper for non-US investors. Tensions figured highly in oil markets as Washington imposed new sanctions on Iran and gunmen shut down an oil production facility in Nigeria.

US light crude on the New York Mercantile Exchange closed up $1.40 at $91.86 a barrel, after surging to $92.22 to rewrite Thursday’s record of $90.60. London Brent gained $1.21 to settle at $88.69 a barrel.

NYMEX oil prices have risen nearly 30% since August on worsening tensions in the Middle East, worries of insufficient oil for heating in the upcoming Northern Hemisphere winter, unprecedented weakness in the dollar, and a shift of investor money into energy and commodities from other asset classes.

Moves by central banks including the US Federal Reserve to cut interest rates — and pump billions of dollars into financial markets to ease a credit crunch — have added to the rally.OPEC, which represents oil exporting nations, says it cannot supply more than it has pledged, and governments including the United States are unable to pressure the group other than say prices are "way too high."

Oil bulls who have driven NYMEX oil to record highs since September received a fresh confidence boost Friday when rebels attacked a production rig in Nigeria, shutting off 50,000 barrels per day in crude output.

New US sanctions against Iran, which is at odds with the UN Security Council over its nuclear programme, also raised questions over future supply from that country, which is the world’s fourth-largest oil exporter. Washington accuses Tehran’s Revolutionary Guard of spreading weapons of mass destruction.

In gold, the most-active contract for December traded on NYMEX’s COMEX metals division ended up $16.50 or 2.1% at $787.50 an ounce. Gold is often seen as a hedge against oil-led inflation and traditionally deemed a safe-haven asset.

http://economictimes.indiatimes.com/Markets/Dollar_woes_ignite_oil_gold_to_record_levels/articleshow/2495975.cms

[ace diamond]

oh the irony of the timing of these two events.

[Blackflag]

Originally posted by ace diamond
oh the irony of the timing of these two events.

Again, I hate to piss on such a wonderful display on intellect here...but a low dollar is good for the US economy and good for the working stiff. Further, it doesn't matter what is priced it, it would cost the same in real dollars. In fact, it's already priced in Euros as a commodity in Europe.

Journey on, my wayward sons...

[Blackflag]

Originally posted by Blackflag
Again, I hate to piss on such a wonderful display on intellect here...but a low dollar is good for the US economy and good for the working stiff. Further, it doesn't matter what is priced in, it would cost the same in real dollars. In fact, it's already priced in Euros as a commodity in Europe.

Journey on, my wayward sons...

[LoungeMachine]

Originally posted by Blackflag
Again, I hate to piss on such a wonderful display on intellect here...but a low dollar is good for the US economy and good for the working stiff.

:rolleyes:

Sure, if the working stiff is stuck in Yakima and buys at wal-mart.

:gulp:

[LoungeMachine]

A weak dollar allows more FOREIGN companies to swoop in and buy US companies at a time when we need US ownership more than ever...

[Blackflag]

...or works at intel designing processors, or works at deloitte doing accounting for multinationals...

You have a cartoonish view of the world.

[Blackflag]

Originally posted by LoungeMachine
A weak dollar allows more FOREIGN companies to swoop in and buy US companies at a time when we need US ownership more than ever...

Now you're getting it. The weak dollar harms the investor, but helps the employee. A buyout does not effect the worker...and I thought you were all about the common man.

On the other hand, a strong dollar encourages further investment in government securities. Would you rather foreign entities buy stock in companies or ownership in the country itself?

:eatit:

[ace diamond]

either way, the us economy is still one big mess.

[Don Corleone]

Originally posted by LoungeMachine
A weak dollar allows more FOREIGN companies to swoop in and buy US companies at a time when we need US ownership more than ever...

It's also allowing people like me to swoop in and do more shopping. At the minute the rate is 2.066 USD to 1 GBP.

[Nickdfresh]

A weak dollar is good for "Main Street" - to an extent....

But the wholesale fall in value in such a short time probably does not bode well for the long term...

Incidentally, a question for those that know more than I regarding investing: Gold is considered the 'end of times' investment, is it not?

[Nitro Express]

Bush is sinking the dollar on purpose so when the people of the US become desperate from the comming depression and failed currency, Bush's backers can sell us on the North American Union and the Amero.

It will be death nail of our Constitutional Rights and country. We will be working stiffs in a dictatorship ran by a few elitists with no real representation of anything.

It's some scary shit happening.

[Nitro Express]

It's the old NATO guard trying to unify the old NATO countries plus Mexico into a pact. The US treasury and military are currently being used to secure the middle east oil reserves. Softball tactics were used by trying to use a puppet govt. It didn't work. Now Iran are the bad guys. We probably will use strategic nukes and get the job finally done and we will control the world's cheap oil.

Once unified with Europe the Eurpean/North American Union alliance will tell China to fuck themselves. The Euro will be the world's currency with Europe the center of world power again. The US will be reduced to a supporting role like the UK currently is. The old US is being used up I'm afraid and we have let it happen.

Soon someone will be promising us a chicken in every pot if we demise the United States and merge with Canada and Mexico. That's the goal here.

[Nitro Express]

A low currecy only is an advantage if you export goods. The US runs record trade deficites. So that means it just costs us more to buy things. Did you know we now need to import food to feed the US population?

Our biggest export is used cardboard. You know the stuff we throw in recycle bins? That's are biggest export. I am not kidding.

[Nitro Express]

Actually how strong or weak the US Dollar is has nothing to do with politicians or that is what they tell us. The Federal Reserve is it's own corporation that acts independently of the US Govt. Nice huh. The value of our money is determined by a private bank and that puts what really runs things in a few influencial hands. The scam of the century. Who controls the country is the central bankers who can create money from nothing. There is no commodity like gold backing our money so no gold has to be purchased to back the money.

The biggest pyramid scheme going and we all buy into it. Maybe that's why they put a pyramid on the dollar. But the Euro or the Yen is the same ilk. Funny money with nothing backing it but the reputation of who prints it.

[Blackflag]

Originally posted by Nitro Express
Actually how strong or weak the US Dollar is has nothing to do with politicians or that is what they tell us.

You stole my thunder. I like conspiracy theories as much as the next guy...but what is it you think Bush did to lower the dollar?

[Blackflag]

Originally posted by Nitro Express
I am not kidding.

You're not right, either...but don't let that stop you. You're on a roll, baby!

[Nickdfresh]

Originally posted by Nitro Express
It's the old NATO guard trying to unify the old NATO countries plus Mexico into a pact. The US treasury and military are currently being used to secure the middle east oil reserves. Softball tactics were used by trying to use a puppet govt. It didn't work. Now Iran are the bad guys. We probably will use strategic nukes and get the job finally done and we will control the world's cheap oil.

Once unified with Europe the Eurpean/North American Union alliance will tell China to fuck themselves. The Euro will be the world's currency with Europe the center of world power again. The US will be reduced to a supporting role like the UK currently is. The old US is being used up I'm afraid and we have let it happen.

Soon someone will be promising us a chicken in every pot if we demise the United States and merge with Canada and Mexico. That's the goal here.

You were a big Art Bell fan, weren't you?

[FORD]

Fuck that North American Union bullshit. I'd prefer the Cascadian option. Let the goddamned "red states" reap what they have sown by voting for war criminals and thieves.

http://spiked.q2u.net/archives/cascadia.bmp

http://media.portland.indymedia.org/images/2006/04/338353.jpg

[Nitro Express]

Originally posted by FORD
Fuck that North American Union bullshit. I'd prefer the Cascadian option. Let the goddamned "red states" reap what they have sown by voting for war criminals and thieves.

http://spiked.q2u.net/archives/cascadia.bmp

http://media.portland.indymedia.org/images/2006/04/338353.jpg

I personally think all will happen is the US will go into a civil war and this may spread to Canada or Mexico. Too many people are onto what's going on and we have too many weapons. I don't think we are going to calmly march into the FEMA ran camps and turn our arms in if things get real desperate. I don't see that happening here and there is also talk of some mountain west states combining with Alberta.

The US Dollar will go bye bye and the country will split along demographic, cultural, and economic lines. Nobody in Wyoming or Montana are going to turn their weapons into FEMA or idly go into one of their camps. What are they going to roll us with? The military is in the middle east and the equipment is getting busted up. The military is about ready to go awol on Bushco anyways. As far as those Blackwater fucks go, ha! We have 50 caliber sniper rifles too. :D

[scamper]

Originally posted by FORD
Fuck that North American Union bullshit. I'd prefer the Cascadian option. Let the goddamned "red states" reap what they have sown by voting for war criminals and thieves.

http://spiked.q2u.net/archives/cascadia.bmp

http://media.portland.indymedia.org/images/2006/04/338353.jpg


Wouldn't it be easier just to move?

[Nickdfresh]

iS daT U pHil Da STalKeR? :)

[franksters]

Originally posted by Nickdfresh
A weak dollar is good for "Main Street" - to an extent....

But the wholesale fall in value in such a short time probably does not bode well for the long term...

Incidentally, a question for those that know more than I regarding investing: Gold is considered the 'end of times' investment, is it not?

A weak us dollar is good for me,,vacation vacation!!

[Combat Ready]

Originally posted by scamper
Wouldn't it be easier just to move?


LMFAO!