03-22-2008, 08:26 PM
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Junior Member
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Join Date: Mar 2008
Posts: 1
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Dollar lower against euro - is this global trend on 2008?
Dollar Registers Biggest Weekly Decline This Year Against Euro Feb. 15 (Bloomberg) -- The dollar posted its biggest weekly loss this year against the euro as a decline in New York manufacturing and tumbling consumer confidence added to concern that the U.S. economy is headed for a recession. ...Lower interest rates are hurting the dollar,'' said Axel Merk, who helps manage $285 million assets at Merk Hard Currency Fund in Palo Alto, California. ``Why put the money in the U.S. where all kinds of negative economic news are coming?... ...Foreign demand for U.S. securities waned in December. International investors bought a net $56.5 billion of U.S. securities that month, down from an addition of $90.9 billion the prior month, the Treasury Department said today... ...European Central Bank President Jean-Claude Trichet said today the 15-nation region still has ``ongoing growth.'' Two- year U.S. Treasury notes yield 119 basis points less than similar-maturity German government debt, up from 116 basis points a week ago... The U.S. data ``was much softer than expected and that's fostered a bit of risk aversion,'' said Daragh Maher, a senior currency strategist in London at Calyon, the investment-banking arm of Credit Agricole SA, France's second-largest bank by assets. ``The impact has been felt by the funding currencies like the yen.'' Dollar Falls as Housing Reports May Bolster Case for Fed Cuts Feb. 19 (Bloomberg)The dollar fell to $1.4742 per euro, the lowest since Feb. 5, and traded at $1.4726 as of 8:45 a.m. in London, from $1.4658 in New York yesterday. U.S. Dollar Falls Below 100 Yen; at 1995 Levels Mar. 13(NPR)The euro exceeded $1.56 for the first time, and the dollar fell as low as 99.75 yen, before bouncing back to 100.16 yen. It was the first time the U.S. currency has traded below 100 yen since November 1995... Dollar Falls on Speculation Housing Slump to Swell Mar. 19 (Bloomberg) The dollar fell against the euro, erasing most of yesterday's gains, on speculation the worst U.S. housing slump in a quarter of a century will swell credit-market losses. The currency weakened against the Japanese yen and the Swiss franc after Bank of America Corp. predicted the Federal Reserve will lower its target rate by another 75 basis points this year following a reduction to 2.25 percent yesterday. Reports this week on U.S. mortgage demand and manufacturing will probably show the economy is slowing. ...The dollar declined to 0.9911 Swiss franc from 1.0024. The franc, often favored in times of crisis, has advanced 14 percent this year. The U.S. currency fell 0.3 percent to 92.98 U.S. cents per Australian dollar and slipped 0.6 percent against the New Zealand dollar to 81.19 cents... ...Futures on the Chicago Board of Trade indicate a 50 percent chance the U.S. central bank will cut its rate by another half point by its June meeting. The odds of a quarter-point cut in April were 38 percent... ...HBOS Plc, Britain's biggest mortgage lender, said it has ``ready access'' to funding after the company plummeted in London trading... The securities firm is likely to join Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. in reassuring investors it has ample cash reserves. Morgan Stanley reported the first loss in its history last quarter. ``Should their earnings fall short of analysts' estimates, this may again trigger stock-market declines and yen appreciation,'' Tohru Sasaki and Junya Tanase, currency strategists in Tokyo at JPMorgan Chase & Co., the third-largest U.S. bank, wrote in a research note today.
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