Free Republic

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.

French president warns US it cannot allow currency to collapse as Europe suffers from euro's rise. The French president, Nicolas Sarkozy, has warned the United States Congress that the US risks triggering "economic war" if it attempts to devalue its way out of trouble by allowing a relentless slide in the dollar. The stunning remarks came as the greenback plunged to a record low of $1.4731 against the euro, causing a chorus of angry protests from industrial leaders in France and Italy. The dollar breached $2.10 against sterling for the first time since the early Thatcher years in 1981. On...

Against all odds, currency calculators could end up being fall's hottest accessory. But, if you're shopping this weekend, don't get one made by Louis Vuitton, because European goods are more expensive than ever this season for anyone spending U.S. dollars. Indeed, European goods are getting more expensive for anyone whose money is pegged to the dollar. Now that the Federal Reserve has made its move to stem the paralysis in the credit markets and subsequent economic weakness, investors are doing the cost-benefit analysis. In the short days following last Tuesday's cut, the costs of a weakened currency seem to outweigh...

Fed's Fisher said welcomes bigger role for euro BERLIN, Nov 20 (Reuters) - Federal Reserve Bank of Dallas President Richard Fisher said on Monday he expected the international role of the euro to grow in time, but stressed he did not expect this to be at the expense of the dollar. "I don't spend my time worrying about the central banks dumping dollars and replacing them with euros," he said during an audience question-and-answer session after addressing the American Academy Berlin Economic Policy Forum. "I expect the euro to play a greater role than before as a reserve currency. I...

LONDON, May 15 (Reuters) - The dollar rose sharply across the board on Monday as a fall in global stock and commodity markets triggered general dollar buying against commodity and emerging currencies. Precious metals such as gold fell sharply on fund-related selling, while European stock markets extended losses on Monday, falling nearly two percent in inflation concerns. "There's quite a lot of liquidation of various asset classes at the momoment. People are liquidating stocks and gold. Liquidation of gold in general typically benefits the dollar," a UK bank trader said. Commodity currencies such as the New Zealand and Australian dollars...

TOKYO, May 1 (Reuters) - The dollar struck a seven-month low against the yen and a one-year low against the euro on Monday, extending a slide as the Federal Reserve appears set to soon end a two-year run of credit tightening. A renewed focus on U.S. deficits after last month's meeting of Group of Seven industrialised powers, worries about Iran's nuclear ambitions and deteriorating technical signals have pummeled the dollar across the board. The yen gained across the board on solid buying by foreign hedge funds and investment banks, while some Japanese players squared positions heading into the country's Golden...

BEIJING (Reuters) - China should gradually reduce its holdings of U.S. debt and can stop buying dollar-denominated bonds, a Hong Kong newspaper on Tuesday quoted Cheng Siwei, a vice chief of China's parliament, as saying. With China a leading financier of the U.S. current account deficit, Cheng's comments sent the dollar lower against the euro and yen and also pushed down prices of U.S. government bonds. The Beijing-funded Wen Wei Po daily carried Cheng's comments, made in Hong Kong on Monday, but it was not immediately clear whether they reflected those of top decision makers who determine the content of...

The United Arab Emirates is planning to switch 10pc of its foreign reserves from dollars to euros in the first sign of fall-out from Washington's snub to Dubai Ports World last week.Sultan bin Nasser Al Suwaidi, the governor of UAE's central bank, said the plan was designed to achieve a better balance in the $19.1bn reserves of the oil-rich Gulf federation, almost entirely held in dollars. "This policy initiative has nothing to do with the controversy over DP World's bid for P&O operations in the US," he said. In the same breath, however, he denounced the move by the US...

A number of Middle Eastern central banks said on Tuesday that they would seek to switch reserves from the US greenback to euros. The United Arab Emirates (UAE) said that it was considering moving one-tenth of its dollar reserves to the euro, while the governor of the Saudi Arabian central bank condemned the decision by the United States to force Dubai Ports World to transfer its ownership to a "US entity", the UK Independent reported. "Is it protectionism or discrimination? Is it okay for US companies to buy everywhere but it is not okay for other companies to buy the...

The Nikkei share average slid 2 percent on Monday as tech firms such as Advantest Corp. (6857.T) fell on a decline in the dollar and after U.S. shares were battered during Wall Street's biggest loss in nearly three years. Internet stocks such as Softbank Corp. (9984.T) dropped on the lingering effects of an investigation by prosecutors into Livedoor Co. (4753.T) on suspicion that the Internet portal had spread false information to investors. Reports of the investigation emerged last week and sent the stock market tumbling. Analysts said quarterly earnings, which are set to peak later this month, kept institutional investors...

LONDON (Reuters) - The dollar hit a 27-month high against the yen on Monday and edged closer to recent two-year lows versus the euro and sterling as greenback buying on yield advantage gathered momentum after a long U.S. weekend. In the absense of major data on Monday, investors, coming back from the Thanksgiving holiday weekend, pushed the dollar higher in anticipation of further rises in U.S. interest rates. The euro kept a low profile as investors awaited European Central Bank speakers including chief Jean-Claude Trichet ahead of a widely-expected 25 basis point rate hike this week. But the outlook beyond...

Technical Overview · British Pound Heads To 1.7000· Swiss Franc Sees 1.3500 In Its Future· New Zealand Dollar Fails To Capture .6900 Traders Corner:Reality or wishful thinking, it’s a very delicate balance when it comes to trading. As a trader I always learned not to let the wishful thinking cloud my judgment. I never let such notions as hopes and dreams distort the reality of the market. At one point when I found myself grasping at straws in a sinking trade I realized that no matter what I think, wish or hope, the market will do what its need to...

TOKYO (Reuters) - The dollar clung close to a two-year high against the euro and a 27-month peak versus the yen on Tuesday as more investors flock to the U.S. currency for its widening yield advantage. The yen came under pressure after Japanese Prime Minister Junichiro Koizumi made a rare comment on central bank policy, saying it was too early for the Bank of Japan to end its ultra-loose "quantitative easing" until deflation is defeated. Koizumi's remarks on Monday added to a chorus of government officials calling for the BOJ, which gained political independence just in 1998, to work with...

LONDON (Reuters) - The dollar remained firm on Tuesday near this week's three-month highs against the euro and 16-month peaks versus the yen as a Federal Reserve official joined the hawkish chorus on U.S. interest rates. The dollar also hit a two-month high against sterling and against an index of major currencies as investors priced in prospects for the Fed to press ahead with its 15-month credit-tightening campaign. Atlanta Fed President Jack Guynn told Reuters in an interview on Monday that the Fed's tightening campaign still has "a ways to go" before completion. Analysts said strong data, equity inflows and...

The Canadian dollar surged to a 13 1/2-year high Monday - gaining almost a full U.S. cent - as a sharp increase in crude oil prices fired up gains against the U.S. greenback. The loonie was trading during the day as high as 85.74 cents US, up 0.9 of a cent from Friday's close of 84.84 cents U.S. It later closed at 85.57 cents US, up 0.73 cent,. "This is the highest we've been since the month of January 1992," said George Davis, chief foreign exchange technical analyst with RBC Capital Markets. "The market is starting to refocus on...

TOKYO (Reuters) - The euro fell below $1.20 for the first time in 10 months on Friday as traders bet that euro zone interest rates will eventually be cut and make the dollar an even more attractive destination for investors. A combination of Sweden's central bank slashing interest rates this week and the Bank of England moving closer to lowering rates has thrown the spotlight on the European Central Bank. ECB officials have held firm that current rates at 2 percent are appropriate, but political pressure has mounted on the euro zone's central bank to do something about the region's...

NEW YORK - Billionaire investor Warren Buffett said on Thursday in an interview on CNBC he maintains a long-term bearish view on the dollar due to the size of the U.S. trade deficit, despite the currency's recent strength. . . . The latest available data show that the U.S. current account deficit widened to $195 billion in the first quarter of this year, or 6.4 percent of gross domestic product — a record by both measures. This means the U.S. economy must attract around $2 billion of foreign capital every day just to balance its books, alleviate the downward pressure...

LONDON (Reuters) - The dollar hit a nine-month high against the euro on Monday, extending recent gains made after upbeat U.S. data and comments from Federal Reserve chief Alan Greenspan fanned expectations of more U.S. interest rate hikes. Finance ministers from the world's rich nations (G8) during their weekend meeting in London kept up pressure on China to move toward more flexible exchange rates, but produced no clues as to the timing. Following last week's better-than-expected U.S. trade data and Greenspan's comments that the economy was on a "firm footing," the market is looking to see if this week's figures...

TOKYO (Reuters) - The euro hit an 11-month low against the yen on Tuesday, hurt by a bleak economic outlook for the euro zone and remarks by the European Central Bank chief which the market saw as a hint of interest rate cuts. The ECB will do "all it can" to reinforce consumer and business confidence, and economic reforms are fundamental to boost euro zone growth, ECB President Jean-Claude Trichet said in a discussion among central bankers from China, Europe and Japan in Beijing. "Trichet suggested that maybe he has to do something about interest rates," said a trader at...

The under-fire euro fell further on Wednesday, slumping to an eight-month low against the US dollar amid rumblings over the long-term future of the eurozone. The fresh selling was prompted by a report claiming that Hans Eichel, the German finance minister, and Axel Weber, the president of the Bundesbank, were present at a meeting at which the possible break-up of European Monetary Union was discussed. The German Bundestag is also said to have commissioned a report on the legal repercussions of a country wishing to leave the EMU. Germany’s finance ministry labelled the talk “absurd”, while Mr Eichel and Mr...

FRANKFURT/BERLIN (Reuters) - The euro dipped sharply on Wednesday on reports that the possibility of a failure of European Monetary Union was discussed at a high-level meeting of German financial officials. A source who attended the meeting last week said Finance Minister Hans Eichel and Bundesbank President Axel Weber were present but that they did not take part in any discussion on the future of the system which gave birth to the euro. The Bundesbank said it would issue an official statement later on Wednesday in response to a report about the meeting in Germany's Stern magazine. Stern said the...

TOKYO (Reuters) - The dollar held near a seven-month high against the euro on Friday on solid U.S. growth figures and expectations that France would say "Non" to an EU constitution in an upcoming referendum. The U.S. currency was also in sight of seven-month peaks struck against sterling and the Swiss franc on Thursday when it got a boost from revised data showing the U.S. economy expanded at an annual rate of 3.5 percent in the first quarter. That compared with the government's previous estimate of 3.1 percent growth, though the revised figure was a tad lower than economists' forecasts....

Germany on Monday launched a dollar bond – its first such foreign currency bond since the second world war – and met with such strong demand that it raised the size of the issue to $5bn. The sale of the bond, which comes amid efforts by the German government to diversify its borrowing base, was met with orders in excess of $13bn during the bookbuilding process. The benchmark size for such an issue is considered to be about $3bn. A formal announcement from the German finance ministry is likely to come today when pricing is also expected to take place....

TOKYO (Reuters) - The dollar rallied to a seven-month high against the euro on Monday after a run of surprisingly upbeat data eased worries that the United States may not attract enough capital to fund its huge external deficit. An above-consensus rise in new jobs and retail sales in April and a narrower-than-expected trade deficit in March have fueled buying in the dollar, pushing the single European currency below its major support level this year. "Investors had preferred the euro. But now they are shifting some of their funds back to the dollar," said Takehiko Jimbo, a forex sales manager...

Strong retail sales data allowed the US dollar jump to a six-month high against the euro on Thursday, pushing through the key technical barrier of $1.2730 on the way. The dollar had risen 0.8 per cent to $1.2706 against the shared currency by mid-session in New York as retail sales jumped 1.4 per cent in April, double the expected rate, with the closely watched ex-autos measure rising 1.1 per cent against forecasts of 0.5 per cent. The release was the latest in a string of dollar-positive reports. Last Friday, non-farm payrolls data pointed to buoyant jobs growth of 274,000 in...

Japan's finance ministry moved swiftly to calm markets yesterday after the dollar tumbled and Treasury yields climbed on comments made by Junichiro Koizumi, prime minister, about diversification of the country's foreign currency reserves. Asked by a parliamentary committee about government policy on Japan's $840.6bn of foreign reserves, Mr Koizumi said: "I believe diversification is necessary." Markets reacted sharply to his comments, sending the euro to a two-month high of $1.3456 against the dollar. Ten-year Treasury yields reached a seven-month high at 4.57 per cent on the news. Japan holds massive amounts of Treasuries as a result of its currency interventions...

The US dollar rose to a three-month high against the euro on Monday amid further signs that market sentiment is warming towards the greenback, temporarily at least.The dollar moved markedly higher in US trade, with dollar bulls pointing to the unveiling of the US budget for fiscal year 2006, which reiterated President George W Bush’s intention to begin dealing with the burgeoning fiscal deficit.However while this appeared to be evidence of the “voice of fiscal restraint” alluded to by Federal Reserve chairman Alan Greenspan in a keynote speech on Friday, the budget contained little new.Paul Mackel, currencies strategist at...

TORONTO (Reuters) - The Canadian dollar rose against the U.S. currency on Friday, ending a run of six losing sessions as the greenback retreated on a weak U.S. consumer confidence report and the loonie got a boost from firmer Canadian wholesale trade data. Canadian bond prices were mixed, as short-term debt prices benefited from falling stock markets, while longer-term bonds lost ground. The Canadian currency finished at C$1.2212 to the U.S. dollar, or 81.89 U.S. cents, up from C$1.2331 to the U.S. dollar, or 81.10 U.S. cents, at Thursday's session close. "It's a broader reflection of the U.S. dollar," said...

NEW YORK - Doers and doings in business, entertainment and technology: Heed the Sage of Omaha. Warren Buffett, whose investment acumen seems unerring, had a caveat for America: Barring "a major change" in policies, the trade deficit will further undermine the U.S. dollar. The billionaire spoke in a Wednesday interview with CNBC, the cable TV news channel owned by General Electric (nyse: GE - news - people ). Without shifting current trade policy, "I don't see how the dollar avoids going down," he mused, warning of inflation risks posed by an anemic Yankee currency. The prairie-born genius also confessed he's...

LONDON (Reuters) - The dollar rose slightly in the first trading session of 2005 on Monday, gaining more than a cent from recent record lows against the euro as investor selling paused ahead of U.S. economic data this week. However, analysts said persistent imbalances in the U.S. economy will likely continue to weigh on the dollar in 2005 after pushing the euro up about 8 percent to record highs last year. Later on Monday, the U.S. Institute of Supply Management's manufacturing survey is due. A Reuters poll forecast the index for December would edge up to 58.1 from 57.8 in...

LONDON (Reuters) - The euro hit a record high against the yen on Thursday and remained within sight of this week's all-time peak versus the dollar as its bull run continued a thin market. The single currency rose above 141.60 yen in thin Tokyo trade, extending Wednesday's gains on technical moves and on concerns that Sunday's tsunami that has killed over 85,000 people around the Indian Ocean could hurt economic growth throughout Asia. "I think the tragic events that have occurred over the past few days in Southeast Asia may be having an impact on the yen," said Kamal Sharma,...

LONDON (Reuters) - The euro set a record high against the dollar for the fifth session running on Wednesday and tested last year's lifetime high against the yen as investors' bearish views of the U.S. currency dominated markets. Trading volumes were thin in the holiday period between Christmas and New Year. There was also little news to turn investors' focus away from their worries about the burden of the U.S. current account deficit on the dollar and about the ability of the U.S. economy to attract enough money to plug this shortfall. "The euro has been strong for a few...

LONDON (Reuters) - The dollar teetered within sight of the previous day's record low against the euro on Tuesday as the market remained confident central banks would not stand in the way of the greenback's decline. Mixed economic news from Japan had little market impact as traders remained fixated on the United States' huge current account deficit and the need for a weaker currency to correct it. The dollar is on track to notch up its third consecutive year of losses in 2004 and most analysts think its slide is not over yet. "There is a very strong consensus that...

SINGAPORE (Reuters) - Asian stocks and currencies fell on Monday after tsunami waves triggered by the world's worst earthquake in 40 years killed nearly 15,000 people and wreaked havoc on tourist beaches. The yen touched an 18-month low against the euro, falling with emerging Asian currencies as traders tried to assess the economic fallout from the disaster. Shares in travel-related companies fell across the board as the region counted the cost of tsunamis that devastated areas of Sri Lanka, southeastern India, Thailand, Indonesia and Malaysia. Thai shares fell 1.5 percent to lead losses in Asia, weighed down by a 3.5...

LONDON (Reuters) - The dollar steadied versus the euro and yen on Thursday following sharp gains across the board in the previous session driven by profit-taking on bets against the long suffering U.S. currency.Unexpectedly strong jobs data from Australia appeared to counter the rising market belief the weak dollar was hurting major economies and forcing central banks to stop interest rate hikes, which in turn would bolster the greenback's appeal. Such arguments, driven by Canada's and Australia's decision earlier this week to hold rates unchanged, were seen as triggers for the dollar's rebound from record lows against the euro...

LONDON (Reuters) - The dollar rose one percent against the euro and the yen on Wednesday as investors bought the U.S. currency back in the run-up to the year-end and eyed the impact of the dollar's weakness on other economies.Worries about the United States' ability to fund its huge currrent account deficit have led to persistent weakness in the dollar, taking it to fresh record lows against the euro on Tuesday and five-year lows against the yen last week. But investors are looking to take profits on the climb of a broad spectrum of currencies against the dollar, while...

LONDON (Reuters) - The dollar tumbled to a record low against the euro on Tuesday after a warning by euro zone officials on the euro's rise fell on deaf ears, with investors determined to dump the U.S. currency.In a joint statement late on Monday, the European Central Bank and euro zone finance ministers gave their starkest warning to date that they were unhappy with the euro's strength. In an echo of developments that preceded the ECB's maiden intervention in the currency markets of 2000, the statement said policymakers were monitoring the situation closely. But the dollar, under pressure from...

It rises, it falls, it's bought, it's sold. On how much of our fate does the dollar's height have hold?"DOWN AND DOWN I go, . . . loving the spin I'm in" might have been written by Harold Arlen and Johnny Mercer as an anthem for the dollar. As it spins down, cries of both glee and anguish are heard in the land, and economists scramble to offer explanations.Some of these experts are confessing confusion, as all--well, almost all--signs point to dollar strength. The latest jobs report shows that the economy is steaming ahead. The Fed has again raised interest...

TOKYO (Reuters) - The dollar tumbled to eight-month lows against the euro and six-month troughs versus the yen on Monday as worries persisted about the outlook for the U.S. economy. The dollar also fell sharply to eight-year lows against the Swiss franc and two-month lows versus sterling, with traders citing a close upcoming U.S. presidential election as another reason to sell the currency. "People are talking about all kinds of things that are bad for the dollar," said Mitsuo Imaizumi, deputy general manager of forex and international bonds at Daiwa Securities SMBC. "We have the twin deficits, officials hinting a...

<p>June 28 (Bloomberg) -- The dollar gained in London against most major currencies after the U.S. handed over its authority in Iraq to a transitional government two days early.</p> <p>The dollar advanced to $1.2138 per euro as of 8:15 a.m. in London from $1.2178 in New York late on Friday, according to EBS, an electronic foreign-exchange dealing system. The U.S. currency also rose against the Swiss franc and 14 of 16 major currencies tracked by Bloomberg after Iraqi Foreign Minister Hoshyar Zebari said the date of the handover will be brought forward to today from the previously scheduled Wednesday.</p>

#315 - Move Over, Gold... The Investment U E-Letter Friday, February 27, 2004 * * * * * * * Move Over, Gold... Here's why it might be time to start burying pennies and nickels in your back yard, too... By Dr. Steve Sjuggerud President, Investment U You need to make some room next to the gold buried in your backyard... Room for pennies and nickels... I'm only half joking. Starting this year, pennies and nickels may be worth more for their metal content than for their purchasing power. It's true... The U.S. dollar has been crashing in value in...

While proclaiming itself Catholic, can the University of San Diego claim that its department of theology and religious studies honors the Catholic intellectual tradition? Who are the people at the center of University of San Diego's Catholic identity?The chairman of USD's theology department, Joseph Colombo, 49, got his Ph.D. from the University of Chicago. Among the courses he teaches are Belief & Unbelief, The Reformation Era, Fundamental Theology, The Problem of God, and The Problem of Evil. It was first reported that he would be appointed chairman in November, 1997 in San Diego's Gay and Lesbian Times.A professor at USD...

On Thursday, the University of South Dakota dedicated the $5 million Al Neuharth Media Center on the USD campus. A two-day celebration marked the renovation of the building constructed as an athletic facility in 1928 that was funded by the Freedom Forum and the USD Foundation. Neuharth, a 1950 USD graduate, founded USA TODAY, the nation's largest daily newspaper in 1982. He also established the Freedom Forum in 1991 as successor to a foundation started in 1935 by newspaper publisher Frank E. Gannett. The Gannett Company publishes USA Today, and Gannett is the America's largest newspaper group in terms of...

The upswing on gold prices may be due to countries' effects to keep their currencies weak.

In a sense the currency reserve structure provides the US with the hegemonies of superpower because it established a monopoly in capital formation, allocation, and investment. The global economic system has been biased to the US Dollar therefore the following economic dynamic operates as a background process through the normal function of stock, commodity, and currency markets; ........... The formation of geopolitical blocks such as the European Union, and a less visible Pan Islamic Union organized around the Islamic Development Bank are aligned to supplant USD hegemony. One layer deeper a "Komplimentranost"of Eurasianism consisting of China, Russia, India, parts of...

AS the battle for Iraq transitions to a guerilla "Infatada," Iran has at least for the moment emerged as the clear winner of the wider war. The US remains under-strength in Iraq and the only reason the battle seams to have been won was dominance of enemy communication channels and the willingness of Iran to let the victory happen. Iran has positioned itself to take the reigns of leadership as a regional and nuclear power. -From an Iranian perspective the stops have been pulled out to build a credible nuclear deterrent and we can expect that nation to leverage the...