Dollar hits bottom, and then falls again

[villager]

Source: Bloomberg, IHT

Dollar hits bottom, and then falls again

Bloomberg News, International Herald Tribune, Reuters, The Associated Press


The dollar fell sharply Friday, reaching a record low against the euro and capping a dramatic week for global financial markets that was marked by interest rate cuts, bank bailouts and skyrocketing oil prices.

The level of the dollar - often regarded as a barometer of the U.S. economy's health - dropped to $1.4120 against the euro during business hours in Asia, reaching an all-time low for a second consecutive day.

It also slipped against a number of other major currencies on speculation that the U.S. Federal Reserve would keep cutting interest rates as the world's largest economy weakens.

Sentiment soured for the dollar after Ben Bernanke, chairman of the Federal Reserve, stoked speculation that he might continue to lower rates following this week's aggressive trim of half a percentage point. Bernanke said Thursday that the sell-off in credit markets could make the housing recession more severe.

The dollar recovered somewhat during European trading, but investors believe that the currency will continue to lose ground, as it has for much of the past six years.

<snip>


Read more: http://www.iht.com/articles/2007/09/21/news/econ.php

[Zenlitened]

1. Interesting to note their phrasing: "...could make THE housing recession more severe..."

Funny how that's just slipping into conversation these days.

Just glossed right over as if we've been discussing THE housing recession for months and months now, ho hum.

When in fact, it seems to me, we went from "subprime problems are being contained" directly to "sure, there's a housing recession but in other news..." with barely a beat skipped.

(Although not all the bloviators have adopted the newspeak yet. I heard one talking-head today refer to "the subprime swoon" -- in the past tense, no less. As if it was just a little nothing, merely an interesting footnote fading into memory now. Oy.)

[SpiralHawk]

2. Thanks a pantload republicons & allied elite corrupt corporate cronies

You and your dimwit leader, Commander AWOL, have screwed the pooch and laid America to waste by spending, spending, spending like drunken sailors

Tell us again how you are "conservatives" Bwa ha ha ha

Why do republicons HATE America

[Xipe Totec]

3. "Will continue to lose ground, as it has for much of the past six years"

Six years, and not a peep from the media...

[DrDebug]

5. How long is Bush pResident? And is there a correlation between the two?

And why does the media not focus on that detail, because I think we've found the root problem.

[slipslidingaway]

8. My thoughts as well, where were the articles on dollar weakness

in 2001 and 2002? Thanks.

US Dollar chart...FWIW

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=1869957&mesg_id=1869957

[rodeodance]

4. into a black hole?

[Javaman]

6. Why does the US dollar hate america? nt

[lapfog_1]

7. Aren't those "Bin Laden" puts expiring today?

The rumor mill had $4.5 billion bet on put options on SPY.X and SPY.Y indexes. If the trades were made, someone needed to have put a little more time in for the 30 percent drop.

Did the puts expire and they lose a majority of that money?

Or could they have been a hedge against something else (like the dollar losing value)?

[Gregorian]

9. Wow. We're now Europe's Canada.

I'm only saying that because we were at this exchange rate with Canada only a few years ago.

[Toots]

10. When Bush* took office I believe the Euro was around $.75, about half of what it is today

The dollar has been on a steady decline which makes our export goods a lot more attractive but what do we export? Seems to me we have a huge trade deficit, which means we pay more for their stuff...

[RUMMYisFROSTED]

15. "...but what do we export?"

Jobs.

[provis99]

11. worse than you think. Canadian dollar is now worth more than US dollar

it went over the $1 US mark today, before sliding back to $.9991. Its expected to top out about $1.10 US in the near future. The US dollar is declining because the Arabs are dumping all their petrodollars, out of fear the US economy is tanking because of massive war debt. Has nothing to do with consumer debts like mortgage, and everything to do with the massive buildup in government debt under Bush.

[EVDebs]

12. Only good news is that this will reverse all that globalization, along with the rise in oil prices

it equals more manufacturing jobs in the US. Unless of course nut cases worldwide decide upon another war in the ME.

[ohio2007]

16. A "buy American" campaign may be pushed by Sam Waltons company

if the Chinese made plastic products cost more than the US Rubbermade "knockoffs" this holiday season ;)


imo,
a weak dollar trumps a trade tarrif

[radfringe]

13. bush's attitude?

we're winning the race to bottom, put on a happy face and go shopping

[ohio2007]

14. Wonder what wil happen to factory orders over the next several months?

At least those looking at overseas sales. On the reverse side of the pond,
Which direction will the Wal Mart prices go for the holiday season consumer spending forcasts ?

[amandabeech]

17. The Chinese currency trades in an extremely narrow range dictated by the

Chinese government, so the price of imports from China should not change too much. Only transportation prices will be affected.

You notice that the yen isn't taking much of a hit either.

Free trade, free markets, my ass.