| View previous topic :: View next topic |
| Author |
Message |
AGGreen
Guest
|
 Posted: Tue Aug 19, 2008 6:06 pm Post subject: Hey, Anti-Americans: How Come the Dollar is Surging? |
 |
|
Euro hits six-month dollar low
Aug 19 06:54 AM US/Eastern
The euro slid to a six-month low against the dollar on Tuesday amid concerns
over a weaker eurozone, while the US currency fell versus the yen on fresh
worries about the health of US mortgage giants, dealers said.
The European single currency dropped to 1.4631 dollars -- the lowest level
since February. In later London trading, the euro stood at 1.4671 dollars
compared with 1.4696 in New York late on Monday.
Against the Japanese currency, the dollar slipped to 109.90 yen from 110.09.
German investor confidence improved slightly in August, a key economic
indicator suggested on Tuesday, thanks to the recent fall in the price of
oil and a weakening of the euro.
The ZEW research institute said its index of economic sentiment stood at
minus 55.5 points, up 8.4 points from July when the survey hit its lowest
level since its creation in December 1991.
"The pick-up in the German ZEW index in August shows that investors'
expectations for the economy have improved, but this is little consolation
given the still low level of the index," said Capital Economics analyst
Jennifer McKeown.
Elsewhere, the dollar slipped against the yen as currency markets also took
their cue from a slump on Wall Street overnight caused by a report that
mortgage finance giants Fannie Mae and Freddie Mac were in need of a
government bailout.
Another report that US investment bank Lehman Brothers would post a loss of
1.8 billion dollars for the third quarter added to market worries that the
credit crunch is far from over.
The yen tends to benefit from jitters on the financial market because it is
often used to fund risky trades.
But some market watchers predicted the yen's rebound would be short-lived.
"The dollar's recent rise was driven mainly by falls in oil prices," Minoru
Shioiri, senior foreign exchange manager at Mitsubishi UFJ Securities, told
Dow Jones Newswires.
"But because the majority view is that there is more room for falls in oil
prices, the dollar's current fall is only a correction and it's expected to
resume rising again."
Traders showed little reaction to a decision by the Bank of Japan to leave
its key interest rate on hold at 0.50 percent as it downgraded its
assessment of Asia's largest economy, predicting continued "sluggish"
growth.
"The grimmer view may prompt some players to start speculating (about) a
higher possibility of a rate cut down the road," said Tohru Sasaki, chief
foreign-exchange strategist at JP Morgan Chase in Tokyo.
"But because interest rate differentials (between countries) are not a
trading factor right now, such speculation would have little impact."
In London trading on Tuesday, the euro changed hands at 1.4671 dollars
against 1.4696 late on Monday, at 161.24 yen (161.83), 0.7893 pounds
(0.7879) and 1.6117 Swiss francs (1.6127).
The dollar stood at 109.90 yen (110.09) and 1.0987 Swiss francs (1.0972).
The pound was at 1.8592 dollars (1.8650).
On the London Bullion Market, the price of gold fell to 789.85 dollars per
ounce from 796.25 dollars late on Monday.
Copyright AFP 2008, AFP |
|
| |
|
 Back to top |
Alexander Arnakis
Guest
|
| Posted: Tue Aug 19, 2008 7:14 pm Post subject: Re: Hey, Anti-Americans: How Come the Dollar is Surging? |
|
|
On Tue, 19 Aug 2008 09:06:59 -0400, "AGGreen"
<AGGreen@not_the_imposter.edu> wrote:
| Quote: |
Euro hits six-month dollar low
The euro slid to a six-month low against the dollar on Tuesday amid concerns
over a weaker eurozone, while the US currency fell versus the yen on fresh
worries about the health of US mortgage giants, dealers said.
The European single currency dropped to 1.4631 dollars -- the lowest level
since February. In later London trading, the euro stood at 1.4671 dollars
compared with 1.4696 in New York late on Monday.
This is not that significant. The euro is *still* overpriced, and the |
dollar is still undervalued. Judging from my own experience, in terms
of relative purchasing power, the dollar and the euro should be at
parity. Anything else leads to arbitrage, such as, for example, when
Europeans travel to America to purchase their new fall wardrobes, and
pay for their entire vacation with the savings. On the other hand,
travel to Europe for Americans is *way* too expensive. At these
exchange rates, when I travel to Greece, everything costs 46% more
than it would in the U.S. |
|
| |
|
| Back to top |
John Galt
Guest
|
| Posted: Tue Aug 19, 2008 9:35 pm Post subject: Re: Hey, Anti-Americans: How Come the Dollar is Surging? |
|
|
"Alexander Arnakis" <invalid@address.none> wrote in message
news:r9lla4hk2v44ojoqmj25nkd4iborju8299@4ax.com...
| Quote: | On Tue, 19 Aug 2008 09:06:59 -0400, "AGGreen"
AGGreen@not_the_imposter.edu> wrote:
Euro hits six-month dollar low
The euro slid to a six-month low against the dollar on Tuesday amid
concerns
over a weaker eurozone, while the US currency fell versus the yen on fresh
worries about the health of US mortgage giants, dealers said.
The European single currency dropped to 1.4631 dollars -- the lowest level
since February. In later London trading, the euro stood at 1.4671 dollars
compared with 1.4696 in New York late on Monday.
This is not that significant. The euro is *still* overpriced, and the
dollar is still undervalued. Judging from my own experience, in terms
of relative purchasing power, the dollar and the euro should be at
parity.
|
Eh. The Euro now has a significant developing market component, that being
Eastern Europe. The currencies of developing markets tend to appreciate
relative to developed markets. I'd put parity in the neighborhood of $1.20,
but that's admittedly a SWAG.
Anything else leads to arbitrage, such as, for example, when
| Quote: | Europeans travel to America to purchase their new fall wardrobes, and
pay for their entire vacation with the savings. On the other hand,
travel to Europe for Americans is *way* too expensive. At these
exchange rates, when I travel to Greece, everything costs 46% more
than it would in the U.S.
|
Apply the above to your 46%, metric, and then keep in mind that most places
in Europe apply a VAT or some other sort of tax that we do not to explain
the difference.
JG |
|
| |
|
| Back to top |
duke
Guest
|
| Posted: Wed Aug 20, 2008 5:24 pm Post subject: Re: Hey, Anti-Americans: How Come the Dollar is Surging? |
|
|
On Tue, 19 Aug 2008 10:14:25 -0400, Alexander Arnakis <invalid@address.none>
wrote:
| Quote: | On Tue, 19 Aug 2008 09:06:59 -0400, "AGGreen"
AGGreen@not_the_imposter.edu> wrote:
Euro hits six-month dollar low
The euro slid to a six-month low against the dollar on Tuesday amid concerns
over a weaker eurozone, while the US currency fell versus the yen on fresh
worries about the health of US mortgage giants, dealers said.
The European single currency dropped to 1.4631 dollars -- the lowest level
since February. In later London trading, the euro stood at 1.4671 dollars
compared with 1.4696 in New York late on Monday.
This is not that significant. The euro is *still* overpriced, and the
dollar is still undervalued. Judging from my own experience, in terms
of relative purchasing power, the dollar and the euro should be at
parity. Anything else leads to arbitrage, such as, for example, when
Europeans travel to America to purchase their new fall wardrobes, and
pay for their entire vacation with the savings. On the other hand,
travel to Europe for Americans is *way* too expensive. At these
exchange rates, when I travel to Greece, everything costs 46% more
than it would in the U.S.
|
Another putdown for protest_ant al, who revels in his ignorance.
duke, American-American
*****
"The Mass is the most perfect form of Prayer."
Pope Paul VI
***** |
|
| |
|
| Back to top |
|
