Mech
Joined: 06 Jun 2001
Posts: 8237
Location: THE 4th REICH USA |
U.S. Dollar now lower than both Euro and Yen
 Mon Nov 15, 2004 4:51 am
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Ummmm...NOW is the time to invest in some Gold folks.
The Dollar is CONTINUING TO DEVALUE.
This will not change any time soon..and expect it to go LOWER.
They are BLOWING OUT OUR ECONOMY..BY DESIGN.
****
Dollar Hits 7-Month Low Vs Yen
1 hour, 11 minutes ago
By Brent Kininmont
TOKYO (Reuters) - The dollar fell to a seven-month low against the yen and was within sight of a record low versus the euro on Monday, due in part to market views that Washington is happy to see it weaken to help narrow the U.S. trade deficit.
The dollar failed to find support from solid economic data released at the end of last week that suggested the pace of U.S. growth was accelerating, as worries persisted about the ability of the United States to fund its huge deficits.
"Listening to the comments of officials in major countries, the U.S. current account deficit is causing more and more worries these days," said Tohru Sasaki, chief forex strategist at JP Morgan Chase.
"So if the U.S. authorities are thinking such a thing (keeping the dollar weak), I am not so surprised."
A weaker dollar is seen lowering the cost of U.S. exports, which would boost demand from overseas for American goods and help to trim the deficit.
The shortfall in the current account, which measures trade and fund flows, hit a record $166.18 billion in the second quarter.
The dollar fell to around 105.20 yen its lowest level since mid-April. By 2200 EST it fetched around 105.40, versus 105.57 in late Friday New York trade.
The U.S. currency fell sharply in the United States on expected repatriation flows into the yen triggered by some $68 billion of U.S. Treasury debt and coupon payments due to mature on Monday.
Analysts in Tokyo said they did not expect large flows back into Japan, however, as Japanese investors usually reinvest in U.S. treasuries.
Japanese accounts are the biggest single group holding U.S. Treasuries, owning some $722 billion as of the end of August.
The euro fetched around $1.2965 near the all-time high of $1.3006 struck last week.
It was slightly down from its level in late Friday trade in New York, where it rose around 0.5 percent.
The dollar had initially edged up against the euro in U.S. trading after a stronger-than-expected consumer sentiment survey by the University of Michigan, but quickly turned tail.
Robust U.S. retail sales suggested the economy was growing strongly in the fourth quarter, giving the Fed leeway to continue raising interest rates.
Some traders said upbeat U.S. economic indicators are of little consequence to a market that has a taste for punishing the dollar.
"I think that people are putting a lot of stories together to try and find reasons to sell dollars," said Luke Waddington, head of forex trading at Royal Bank of Scotland.
"They may not be accurate, but I think that the market just wants to sell dollars," he said, adding that the euro would likely mark a record peak against the dollar by Wednesday but shouldn't move much higher. |
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