Dollar Hovers Near All-Time Lows Against Euro, Gold Up in Europe

[NNN0LHI]

http://ap.tbo.com/ap/breaking/MGAZ3GWD7ND.html

LONDON (AP) - The U.S. dollar hovered near an all-time low against the euro and was mixed against other major currencies Wednesday in European trading. Gold prices rose.

The euro was trading at $1.1929 in late morning trading Wednesday in Europe, up from $1.1896 Tuesday. It had reached $1.1973 in late trading Tuesday in New York - the highest level since the euro was introduced in 1999.

Traders began selling dollars following news that the Bush administration has granted U.S. industry requests to impose temporary quotas on some imports of Chinese textiles. That fed concern about trade wars developing between the United States and key trading partners.

Other dollar rates in midday European trading compared with late rates Tuesday included: 108.77 Japanese yen, up from 108.35; 1.3003 Swiss francs, down from 1.3073, and 1.3005 Canadian dollars, down from 1.3035.

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[La_Serpiente]

1. This is exactly what I am afraid of

Free trade has its drawbacks as well. It was only a couple centuries ago did many of the European countries have war over spices, sugar, tea, salt, opium. Are we going down that path as well?

There is free trade, and there is fair trade. However, is there a such thing as smart trade? I don't think America understands trade enough to grasp the entirety of it.

[Spazito]

2. I have been holding US dollars for when I visit the US but am now ...

going to trade them for Canadian dollars before I lose any more value. I suspect I am one of many average Janes that are doing that. I also called my investment manager to make sure I do not own any US bonds or treasury bills. I held off as long as I could. I love the US but it is looking very bad financially right now. Geez, I soooo hope you get rid of Bush in 04!

[dbt]

3. Yeah, before he gets rid of US!

"Us" comprising anyone who does not earn a minimum of $200,000 a year!

And didn't the US Dollar hit a "record low" against the Euro just yesterday?!?!?

:freak:
dbt

[LibLabUK]

4. Hmm

"And didn't the US Dollar hit a "record low" against the Euro just yesterday?!?!?"

And Sterling hit $1.70, a 5-year high. Not a good time for the dollar.

[Art_from_Ark]

6. And it only takes 108 Japanese yen to buy a dollar

as compared to 132 yen about a year ago, and 118 yen just two months ago.

[Spazito]

5. This was just posted in the Stock Market Report thread...

Citibank Closes All Long Dollar Positions as Unit Plunges

NEW YORK -- Citibank (NYSE:C - News), one of the largest traders in global foreign exchange markets and biggest dollar bulls, closed all its existing long dollar positions Tuesday.
The move, on the day the dollar plunged to record lows against the euro, is significant in that the dollar's slide has forced one of the most aggressive dollar bulls in the market to temper its optimism toward the currency.

In a research note, Citibank currency analysts cite three specific reasons: the U.S. decision Tuesday to impose temporary quotas on certain textile imports from China, the dollar's failure to respond to positive U.S. economic data and the breakdown of key technical levels such as dollar index support at 90.56.

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http://biz.yahoo.com/djus/031118/1639001518_1.html

(This doesn't sound good at all)

[Art_from_Ark]

7. Maybe the dollar isn't responding to "positive" economic data

because the traders know it's bunk?

[Laughing Mirror]

8. what is a long dollar position?

and what does it mean to close it?

[Vogon_Glory]

9. US Dollar Sinks Against the Euro, the Yen, and Gold

The value of the US dollar slides against that of the Euro, the Japanese Yen, and Gold? Sounds like world bankers and financiers outside of George the Lesser's charmed circle are less than favorably impressed with the gang running the executive and legislative branches. A sliding dollar is a far more realistic assessment of the effects of Dubya's and the GOP's economic policy than terrabytes of hype emanating from Republican Party- and "Conservative" movement-affiliated on-line spin sites.

Small wonder that Caribbean countries are starting to accept Euros as payment as well as the dollar.