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Signs the U.S. dollar free fall is ending
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#2
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Dollar Nears 18-Month High Against Euro on U.S. Stimulus Talk
By Stanley White and Ron Harui Oct. 21 (Bloomberg) -- The dollar traded near an 18-month high against the euro after U.S. Federal Reserve Chairman Ben S. Bernanke endorsed additional fiscal stimulus to avert a prolonged recession. The greenback was also close to its strongest in a week versus the yen after the White House said it may support such measures, having previously refrained from supporting plans to add to a $168 billion package approved in February. The Australian dollar declined after the central bank said it saw a ``strong economic case'' for its Oct. 7 interest-rate reduction, fueling speculation it may cut borrowing costs further. ``An additional stimulus package will support the dollar,'' said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. ``This shows that U.S. officials are prepared to go far to limit damage to the economy.'' The dollar traded at $1.3326 as of 11:11 a.m. in Tokyo from $1.3344 late yesterday in New York. It reached $1.3259 on Oct. 10, the strongest since March 2007. The U.S. currency was at 101.82 yen from 101.86 yen. The yen traded at 135.70 per euro from 135.92. The dollar may rise to $1.3285 today, Soma said. The Australian dollar fell to 69.91 U.S. cents from 70.44 cents late yesterday in New York. It also declined to 71.22 yen from 71.76. The U.S. currency has gained 20 percent since touching a record low of $1.6038 per euro on July 15 on speculation the greenback will benefit as the European economy slows. Fed, ECB The Dollar Index traded on ICE futures in New York, which tracks the greenback against the currencies of six major trading partners, has rallied 16 percent during that period as U.S. fund managers dumped emerging market assets and Asian companies hoarded the dollar after credit markets froze. U.S. Lawmakers should consider ``measures to help improve access to credit by consumers, homebuyers, businesses and other borrowers,'' Bernanke said in testimony to the House Budget Committee yesterday. Within an hour of the conclusion of Bernanke's testimony, White House Press Secretary Dana Perino said officials are ``open'' to the idea of a new plan and would ``look carefully'' at suggestions. Traders expect the European Central Bank to lower borrowing costs further after cutting the main refinancing rate by half a percentage point to 3.75 percent on Oct. 8 as part of coordinated reductions by major central banks. The implied yield on the three-month Euribor contract expiring in March fell to 3.41 percent yesterday, the lowest level in seven months. The yield has been 0.23 percentage point higher than the benchmark rate on average over the past year. ``Concerns over a European economic downturn are intensifying,'' said Ryohei Muramatsu, manager of Group Treasury Asia at Commerzbank AG in Tokyo. ``An ECB rate cut is possible. The euro is becoming a very weak currency.'' The euro may fall to $1.3280 and 135.30 yen today, he said. |
#3
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The dollar has been doing well since the **** hit the fan. I have a ticker on my computer screen and have been watching it gain ground on the Euro for the past month.
If nothing else it means cheaper Mercedes parts!
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1999 SL500 1969 280SE 2023 Ram 1500 2007 Tiara 3200 |
#4
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Its probably not that the dollar is so great, but the euro is now down too.
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[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.[SIGPIC] ..I also have a 427 Cobra replica with an aluminum chassis. |
#5
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It's not that sea level is rising, it's that the land is sinking.
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#6
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i thought this thread was alittle old.
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"It's normal for these things to empty your wallet and break your heart in the process." 2012 SLK 350 1987 420 SEL |
#7
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Quote:
Glub, glub, glub . . . . .
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" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century OBK #55 1998 Lincoln Continental - Sold Max 1984 300TD 285,000 miles - Sold The Dee8gonator 1987 560SEC 196,000 miles - Sold Orgasmatron - 2006 CLS500 90,000 miles 2002 C320 Wagon 122,000 miles 2016 AMG GTS 12,000 miles |
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