Dollar hits fresh 15-year low

[TexasLawyer]

Source: Financial Times

Dollar hits fresh 15-year low
By Peter Garnham

Published: September 11 2007 12:04

The dollar fell to a fresh 15-year low against a basket of currencies on Tuesday as the currency continued to suffer from the prospect of a cut in US interest rates.

Expectations that the Federal Reserve would move to lower interest rates at its meeting on September 18 have increased since last week’s US employment report, which showed the recent turmoil in the credit markets had spilled over into the wider economy.

“The dollar remains undermined by the increasing prospect of monetary easing by the Federal Reserve as it attempts to forestall the US economy from slipping into recession,” said Derek Halpenny at Bank of Tokyo-Mitsubishi UFJ.

Analysts said a sharp rise in the price of oil caused by attacks on oil and gas pipelines in Mexico and doubts that Opec would raise its production quotas at its Vienna meeting had not helped the dollar’s cause.



Read more: http://www.ft.com/cms/s/0/e1281bc8-604c-11dc-8ec0-0000779fd2ac.html

[ClintonTyree]

1. Yet the stock market reacts positively.....

this is a GOOD thing! Because the Fed might, MIGHT, lower interest rates a quarter of a point! :party:

And to the rest of America that doesn't belong to the investor class? Well, tough shit. Your purchasing power just took another flush down the crapper. It sucks to be us! :eyes:

[DBoon]

2. or maybe the stock market has flatlined

and it only looks like an increase because the dollar is worth less?

[Phx_Dem]

3. Gold surges past $700 level

Gold on Friday surged through the $700-a-troy-ounce level for the first time in 16 months as investors sought refuge from the falling dollar in the wake of weak US jobs data.

Spot gold in London hit $707.10 an ounce, its highest level since May 2006, as expectations of a cut in US interest rates pushed the dollar to $1.3798 against the euro.

The sharp rally in gold, which later traded at $703.7 an ounce, up $8.50 on the day, takes the metal close to its 26-year high of $730 reached in May 2006.

Silver rose to $12.60 an ounce, still well below last year’s high of almost $15.

The price surge was driven by robust physical demand for the metal from India, China and other emerging markets as well as gold’s appeal as a safe-haven asset, traders said.

James Gutman of Goldman Sachs said: “Gold will continue to face upside pressure, driven largely by the weakness in the US dollar.”

http://www.ft.com/cms/s/0/e1dbada0-5d72-11dc-8d22-0000779fd2ac.html


He said gold prices could rise to $725 an ounce in the next 12 months.

[Demeter]

4. 15 Years Ago Was 1992-- When Clinton Took Over, Right?

George undid in 6 years what took Clinton 8 to fix. Conan the Destroyer.

[catnhatnh]

5. Yep...

took them 12 years-(1980-1992) Reagan,Reagan,Bush the 1st to drive it to that point, till the Clintons took over for eight years and leaving, left with a budget surplus....now after just 7 years of Arbusto el dos we are back in the shitter...he finally beat Dad at something...

[roamer65]

6. Here comes the Dollar crisis.

Its about time. The dollar is a seriously OVERVALUED currency.

:evilgrin:

[JBoy]

7. Us Canadians are liking it

One upside has gotta be the influx of Canadian tourists heading south for better holiday and shopping deals. Problem now is the border line-ups.

[JCMach1]

8. UAE is giving serious consideration to depegging our currency to the dollar

Other countries here are also thinking about following the example of Kuwait (going to a basket of currencies). The dollar drop is fueling inflation even more here.

[anakie]

9. but you are winning the war. n/t

edited to add <sarcasm>