Dollar Hits Multi-Month Lows Vs Euro, Yen

[UpInArms]

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=6591824

TOKYO (Reuters) - The dollar hit eight-month lows against the euro and six-month troughs versus the yen on Monday on continued worries about the U.S. economy and the yawning trade deficit, and traders say it could fall even further. Dealers said the dollar's outlook against the Japanese currency had worsened because it dropped below the closely watched 107 yen level -- the lower end of the five-yen range in which it had moved for the past five months.

"We are more likely to see a move then a drop toward a (four-year) low of 103 yen now," said a dealer at a U.S. bank.

"Recent comments from U.S. and European officials that hint at a weaker dollar are also adding fuel to the selling."

At 9:20 p.m. EDT, the dollar bought 106.75 yen after falling to as low as 106.55, the lowest since mid-April. It fetched 107.26 in late U.S. trade on Friday.

Some traders said the dollar's downside against the yen would likely be limited due to concerns that the Japanese government might intervene to sap the currency's strength.

...more...

[whistle]

1. Just another indicator of how badly the economy has performed....

...under George Bush's watch. A weaker dollar means higher fuel prices, higher prices for everything we import and consume here. The argument will go that the lower dollar means we become more competitive in the world markets so our goods and services will be in greater demand, but that is only true if other countries want what we have. The only things we produce that other countries can't do as effectively as we can are the military weapons we have for sale. The prices for military weapons is inelastic, which means buyers will pay through the nose. So expect the war mongers to get really rich, while American wages keep declining.

[barb162]

4. and damned Greenspan still supports the Bush BS while

the economic indicators, consumer sentiment, the NYSE, etc., are all headed down the toilet

[ixion]

17. Greenspan is a whore, who is personally responsible for

trashing the economy -- raising interest rates despite the presence of inflation. He said he was doing this to 'head off' inflation, but it's effect was to stifle the growing economy. You might say he applied the 'Bush Doctrine' of preemptive war to inflation, with the same type of results this tragic piece of trash has provided for the US abroad: catastrophic results.

He has no credibility, like the rest of this maladministration.

[UpInArms]

18. Meanspin is hand-in-glove with this mal-administration

Greenspan increases White House visits
Fed chairman meets frequently with Bush officials

http://msnbc.msn.com/id/5074781/

Federal Reserve Chairman Alan Greenspan's visits to the White House and meetings with top administration officials increased sharply after President Bush took office in January 2001, according to records released to an academic researcher under the Freedom of Information Act.

<snip>

Since the 1950s, when the Fed's independence was firmly established, its chairmen have generally taken pains to maintain their distance from the executive branch. The Fed's ability to conduct monetary policy without regard to political fallout is thought to be key to its credibility in financial markets.

<snip>

Greenspan's frequent contacts with the Bush administration do raise questions for Kenneth H. Thomas, a lecturer in finance at the Wharton School at the University of Pennsylvania. "There's the appearance that might not just be affected by economic winds, but possibly by political winds," said Thomas, who obtained records of Greenspan's appointments back to 1996 through the Freedom of Information Act, and who published his findings in an article in the American Banker last month.

Thomas praised Greenspan's performance as Fed chairman, but noted that Greenspan provided critical support for the Bush tax cuts, and now advocates making the tax cuts permanent. In a presidential election year, Thomas said, Greenspan's close contacts with the administration "become at least a potential appearance problem."

Greenspan's meetings do mark "a huge and historic shift," said Donald Kettl, a professor of political science at the University of Wisconsin at Madison and author of a book about political influence on the Fed.

...more...

[barb162]

23. like Scalia doing fishing trips with Cheney? How much do you

think Bush paid Greenspan to do his bidding? This is the only thing I can figure out. Greenspan maintained his independence with every Prez and all of a sudden (in 2001) he got chummy with the chimp. All of a sudden (the beginning of the Bush administration) enormous deficits, job loss in the millions, job creation that has been consistently far below Clinton's economy, etc., are all meaningless to him.

[indepat]

19. Greenspan, a name which will live in infamy IMHO for he supported tax cuts

mostly benefitting the most affluent and then admitted future social security benefits will need to be slashed to pay for those tax cuts.

[barb162]

22. remember how that IDIOT said the tax cuts would stimulate the

economy? Which I knew was total BS from the start and he knew it too re the failed trickle down theory from Reaganomics. Here 's an article from Today's CNN Money (notice the reluctance of the wealthy to spend their damn money, their tax cut money):


Rich Americans losing confidence

Report finds rising oil prices and concerns about housing bubble erode
sentiment of wealthy.
October 25, 2004: 7:49 AM EDT



NEW YORK (Reuters) - Wealthy Americans are becoming increasingly worried bout the country's economic outlook, and their reluctance to spend and invest is hurting growth, according to a survey released Monday.

As oil prices boil to new records and Iraq continues to appear unstable, McDonald Financial Group's Affluent Consumer Confidence Index slid to 48in the third quarter from 61 in the July poll.

More alarming, 42 percent of the people surveyed said the economy was
headed in the wrong direction, almost double the number who thought so
just three months ago.

With the presidential election only a week away, the results weaken
President Bush's claim that Americans are better off now than they were four years ago.

"We think the findings of this survey are particularly significant on
the eve of the presidential election as the affluent are known to vote
in strong numbers," said David Legeay, senior vice president at McDonald Financial.
snip

[Tight_rope]

11. So True....the US doesn't have shit that the world wants.

Thanks to the corporate whores. Third world countries now know how to make clothes, shoes, cars, they now have the knowledge of our technology all and the list goes on. Hell they don't eat our food because it either has some kind of disease or it has something injected in it to make you fat. So I would say that we are fucked.

[aquart]

2. Russia's Central Bank has stopped supporting the dollar.

Just this weekend, in fact.

[ochazuke]

5. There's what Putin says. Then there's what Putin does.

(Parody of Bush anti-Kerry attack ad)

[Amigust]

3. It also means, that thanks to *'s deficits, the value of all

dollar denominated assets also drops compared to the rising currencies.

That means the comparative value of your house, bank account, everything.

[54anickel]

6. Hey UIA, have you looked at where it is right now? 85.07, got as low as

85.02 earlier tonight.

[Chicago Democrat]

7. This is unreal... The Great Unraveling...Thanks alot George!

This is costing investors BIG TIME

[BeHereNow]

8. What's that saying?

something about payback and hell?
Like China and Russia were going to
lie down as beaten dogs at the foot of the corporate masters...
BLOWBACK is here, now.
BHN

[Tight_rope]

12. Well maybe now corporate America will turn on Bush*

[UpInArms]

13. still dropping

Last trade 84.92 Change -0.95 (-1.11%)

http://quotes.ino.com/chart/?s=NYBOT_DXY0

[jsquared]

9. The speed of the dollar depreciation in the past couple weeks has been

really impressive - almost 4% vis-a-vis the euro. If it breaks through 1.29, that could be really interesting. While the government wants further depreciation, they don't want a crash. However, they don't really have the power to prevent it if foreign bondholders start to really bail.

[BeHereNow]

10. And people who are paying attention

are going to bail- me for instance.
I am moving as much as I can- TOMORROW.
BHN

[happynewyear]

16. I bailed over a week ago

couldn't stomach the investments I had going any longer - too volatile. Now sitting in some lackluster treasury bond funds; minimal investment luckily. *sigh*

Even if Kerry wins, we have a very long way to go to finding any type of investments that might actually pay something. Very sad for the USA.

Best of luck to you.

baldearg

:dem:

[barb162]

24. invest in Chinese stuff, that will be the numero uno economic power

soon. That's where we send all of our tech, manufacturing, etc, right?

[UpInArms]

14. related article: Dollar tumbles vs. euro, yen

http://cbs.marketwatch.com/news/story.asp?guid=%7B08A39E67%2DDEEB%2D442C%2DB57C%2DA999847A5329%7D&siteid=mktw

LONDON (CBS.MW) - The dollar tumbled to an eight-month low against the euro and a six-month low against the yen Monday as high oil prices and next week's tightly fought presidential election heighten the uncertain outlook for the U.S. economy.

"The general mood is dollar negative," said Steve Pearson, a currency analyst at U.K. bank HBOS. He added that some Asian reaction to the dollar's technical position is hitting the currency.

"There's concern over a close outcome or a Florida-type debacle, given how close public opinion is," he said. The dollar was nearing a 10-week low vs. the British pound at $1.8425.

Pearson said the market is divided on whether a victory for Sen. Kerry would be dollar-positive. "Kerry might be the best candidate to cope with issues like the inevitable dollar decline, whereas Bush has a tendency to leave things to the market or turn a blind eye to Asian intervention," he said.

The dollar, which fell below the 107 yen for the first time in more than six months, traded at 106.79 yen, compared with 107.24 yen late Friday in the United States. The dollar fell as low as 106.55 yen, its lowest since April 14, in early morning trade in Tokyo.

...more...

[bling bling]

15. Vote or Die -- it's no joke.

"Kerry might be the best candidate to cope with issues like the inevitable dollar decline, whereas Bush has a tendency to leave things to the market or turn a blind eye to Asian intervention," he said.

<snip>

[NinetySix]

20. The Canadian Dollar is up, too.

I just saw the latest exchange: 81.82 cents on the US Dollar (or $1US=$1.22CDN).

This may not sound like too big a deal, but the Loonie has been rising against the US Dollar for about a year and a half now. During the Spring of 2003, the exchange was roughly 61 cents on the US Dollar.

Despite the fact that the unstable rate of exchange is affecting both tourism and exports (the US is obviously Canada's largest export market), the Canadian economy is steaming along, and Canadians' biggest topic of political conversation these days is how to spend the country's $9 billion (CDN) surplus.

Oh, and my student loan is in US Dollars, so it's getting cheaper for me every day. The grass really is greener.

[leftchick]

21. Get Ready Folks! More bush* means.....

[barb162]

25. exactly, get a spot in line while the handouts are still there

[54anickel]

26. Just hit another low of 84.73. Long term tech support is at 84.50, damn

we're getting closer. The bears have really won so far today.