Posted on 03/01/2008 2:49:59 PM PST by NoLibZone
Dollar slumps amid the gloom
Published: March 1 2008 02:00 | Last updated: March 1 2008 02:00
The dollar slumped this week after a worsening array of US economic data deepened fears of recession and increased expectations of further aggressive US interest rate cuts.
The US currency fell to record lows against the euro and Swiss franc and multi-year troughs against a number of other currencies.
Tumbling US house prices, falling consumer confidence, weaker-than-expected orders for durable goods, stalling manufacturing, flat economic growth and signs of a weakening labour market drove expectations of lower interest rates.
(Excerpt) Read more at ft.com ...
Yep, still good against the Yuan.
should I make a run on the bank ? [/sarc]
And the South Korean Won, the Japanese Yen, the Taiwan Dollar...
Our “suppliers” have pegged - or manipulated - their currencies to have very little shift against us. At the same time, our main consumers - Canada and the EU - have jumped a lot.
This results in our exports increasing, and our costs of doing business barely changing. It’s actually a pretty good situation to be in!
Unless your competition is from South Korea, Japan, China or Taiwan or you are trying to sell into those markets.
Canada, most of the EU and much of South and Central America are customers of the US because they participate in free trade rather than gaming the system for their own short term gain.
Unless they come up with, "Dollar Causes Cancer," it just might be the sign of the bottom.
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