Dollar at 14-year low vs. the pound, 20-month low vs. euro

[TexasLawyer]

Dollar at 14-year low vs. the pound, 20-month low vs. euro
Updated 11/30/2006 10:15 AM ET

By Nick Olivari, Reuters

NEW YORK — The dollar traded at 14-year lows against the pound and remained near a 20-month low versus the euro Thursday, extending its broad slide on concerns about the U.S. economy and the possibility of an interest-rate cut by the Federal Reserve. U.S. economic data showing steady core inflation and a rise in weekly jobless claims failed to change the investor outlook for U.S. interest rates.

"There isn't something in this number that the market is looking at and saying 'oh my God we've got to sell the dollar'," said Meg Browne, senior currency strategist at Brown Brothers Harriman in New York. "It's this overriding bearish dollar sentiment and people are really nervous that they've missed the move and the euro is going to $1.35."

The euro was up 0.4% to $1.3196, though it was off the global session high of $1.3216. Wednesday, the euro touched a peak of $1.3218. The dollar fell 0.2% against the Japanese yen to 116.16 yen.

The specter of stagnating or falling interest rates in the United States compared with rising rates in Britain and the euro zone has hurt the dollar the past week, knocking as much as 3% off the value of the greenback against the euro.

<snip>

http://www.usatoday.com/money/world/2006-11-30-dollar-daily_x.htm

[TexasLawyer]

1. Higher oil prices-- one of the effects of a stagnating dollar

The Associated Press November 30, 2006, 8:17AM EST

Oil prices extend rise above $62
By GEORGE JAHN

VIENNA, Austria

Oil prices edged higher Thursday, reflecting falling U.S. energy inventories, high fuel oil consumption and the approach of the Northern Hemisphere's winter season.

Other factors contributing to the market's upward momentum included a decline in the U.S. dollar, the currency in which crude oil is traded. The possibility of further production cuts by the Organization of Petroleum Exporting Countries when it meets next month in Nigeria also weighed on traders' minds.

Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures in Tokyo, suggested prices would likely to go higher.

<snip>

http://www.businessweek.com/ap/financialnews/D8LNDK5O0.htm

[grizmaster]

2. Make that a 15-year low

At least that's what the Telegraph said yesterday

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=364&topic_id=2825709&mesg_id=2825709

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/...

The dollar tumbled to a near 15-year low against sterling yesterday on fresh signs of economic trouble in the United States.

An 8.3pc crash in US industrial orders and an admission by the Federal Reserve chairman that Washington does not know how bad housing really is set off another day of wild gyrations on the currency markets.

US house prices fell 3.5pc to an average $221,000, the third month of declines. Stocks of unsold homes rose to 7.4 months' supply, the highest since 1993. The US consumer confidence index fell sharply to 102.9.

The "truckers index" of tonnage shipped by US haulage companies was down 1.8pc in October, a leading indicator of contraction. Merrill Lynch called the fall "borderline recessionary".

[muriel_volestrangler]

4. Closer to 14:

Fears that the US housing slowdown could derail the wider US economy played a part in the dollar's weakness. This afternoon, sterling stood at $1.9494, having hit a two-year high of $1.9545 earlier in the day.

The pound's early morning peak was just below the $1.9550-mark sterling hit in December 2004. That was its highest level since Black Wednesday in September 1992, when the pound was ejected from the European Exchange Rate Mechanism.

The pound last hit $2 on September 8 1992, at a time when it was linked to the Deutsche Mark through the ERM.

http://business.timesonline.co.uk/article/0,,16849-2477837,00.html

[kineneb]

3. well, folks

it isn't like we didn't know this was approaching...

Time to stock up on canned goods, and buy any import goodies* before the prices go up.

*Not cheap crap, but good imported stuff, such as Swiss and Belgium chocolates.

[Ezlivin]

5. Don't forget the smoked kippers!

[Tight_rope]

6. And wine...can't forget that. It goes with the chocolates.