(US) Dollar falls to new low as markets await Fed's next move

[alp227]

Source: The Guardian

The US dollar has fallen to new lows against other major currencies, undermined by predictions that the US would continue to resist pressure to raise interest rates.

In early trading, the dollar dropped to its weakest level ever against the Swiss franc, having touched a record low against the Australian dollar overnight. It also hit a four-week low against the yen, while the dollar index, which measures it against a basket of rival currencies, was close to its lowest level since August 2008.

The fall came a few hours ahead of the start of the Federal Reserve's monthly two-day meeting to set monetary policy.

City experts believe that this will be a defining week for the dollar. Ben Bernanke, chairman of the Fed, will for the first time hold a press conference on Wednesday evening immediately after the Federal open market committee has voted. Traders expect no change to the Fed's current loose monetary position.

Read more: http://www.guardian.co.uk/business/2011/apr/26/dollar-falls-new-lows

[Davis_X_Machina]

1. If you're a politician -- and Fed president is political as hell --

...and the first two words out of your mouth aren't 'aggregate demand', you're blowing smoke up my ass. And if the next four aren't 'Marginal propensity to consume', then you're not being serious.

Is a 'weak dollar' or a 'strong dollar' more conducive to aggregate demand?
Which one promotes consumption by people who are presently constrained to consume less than they would normally?

[dipsydoodle]

2. Good - keep up the good work

Aim for at least $2 : £1

It helps make importing Martin guitars etc cost less in the UK.

[Davis_X_Machina]

3. At the time this country's economy was growing fastest...

...my youth, the 60's, the pound was worth $2.40-$2.80.

Exports = jobs.

[dipsydoodle]

4. I guess

we're about the same age then.

It was between those levels c. 1980/81 too.

:hi:

[Davis_X_Machina]

5. You don't have to tell me...

..I was in grad school doing Classics, and buying Greek and Latin books from Basil Blackwell... it still hurts to think about it.

I used to get them a little bit cheaper from Eason's of Dublin, or Fred Hanna's but not much.

[GillesDeleuze]

6. Anybody here trade currencies?

The only positive moves for the dollar have been for scalping, all resistance points are pretty fatal, from a day trading perspective.

[conspirator]

7. Keep printing bernanke. We are running out of toilet paper nt