- Oct 24, 2000
- 29,767
- 33
- 81
So I guess when the USD becomes as valuable as the Peso, politicians will finally care.
Deficits do matter people. Please tell your Congressman/woman that we do care, and it's time to bring this spending under control.
---------------
Sept. 8 (Bloomberg) -- The dollar declined to the lowest level this year against the euro as the prospects for economic recovery spurred a rally in global stocks, helping to push gold above $1,000 an ounce and oil to more than $70 a barrel.
The greenback also fell the most against the currencies of six major U.S. trading partners since July as the dollar became the cheapest funding currency in the London interbank lending market. The Brazilian real and South African rand rallied more than 25 percent this year as investors sought higher-yielding assets in emerging-market nations.
?You are seeing a reversal of flight to quality as investors start to put money into higher-yielding assets,? said Warren Naphtal, who oversees $915 million in currency assets as chief investment officer in Weston, Massachusetts at P/E Investments, an asset-management company. ?The U.S. dollar is a good source for cheap funding.?
The dollar depreciated 1.3 percent to $1.4520 per euro at 12:34 p.m. in New York, from $1.4332 yesterday, after earlier reaching $1.4522, the weakest level since Dec. 18. The U.S. currency dropped 1 percent to 92.17 yen, from 93.08, and slid 1.5 percent to 1.0444 Swiss francs. The euro advanced 0.3 percent to 133.81 yen, from 133.39.
The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against currencies including the euro, yen and franc, fell as much as 1.2 percent to 77.047 today, the lowest level since Sept. 29. It was the biggest intraday drop since July 31.
The three-month London interbank offered rate for dollars fell to 0.30 percent today, from 0.31 percent yesterday, according to the British Bankers? Association. The borrowing cost dropped below that of the Swiss franc, which was at 0.31 percent, for the first time since November, making the dollar the cheapest currency for investors to fund purchases of higher- yielding assets. The corresponding rate for funds in yen was 0.37 percent, increasing its advantage to the widest level since January 1993.
?The dollar is the predominant funding currency,? said Todd Elmer, currency strategist at Citigroup Inc. in New York. Elmer advises his clients buy the Canadian dollar versus the yen and the Norwegian krone against the franc to cash in on the improvement in ?risk sentiment.?
Traders are betting on longer-term declines in the dollar after the U.S. budget gap reached $1 trillion. Forward contracts show the greenback weakening to $1.49 per euro in the next 10 years, compared with an average of $1.17 since the single European currency was introduced in 1999.
The Commerce Department will report the trade balance for July on Sept. 10. The median forecast of 62 economists in a Bloomberg News survey is for a deficit of $27.3 billion. While that would be improved from $64.9 billion a year earlier, the trade balance has been little changed since February.
Trade feeds into the broader current-account balance, which includes transfer payments and investment income and stood at a negative $101.5 billion in March. While the gap has narrowed from a record $214.8 billion in September 2006, it?s still above the average of $63.2 billion over the past 30 years and means the U.S. needs to attract about $1 billion a day in new foreign capital for the dollar to maintain its value.
The real gained 1 percent to 1.8246 versus the dollar today and the rand climbed 0.7 percent to 7.5250 on bets investors will increase trades in which they sell the currencies of nations with low borrowing costs and buy assets in developing nations where returns are higher. The U.S. target lending rate of zero to 0.25 percent compares with 8.75 percent in Brazil and 7 percent in South Africa.
The Standard & Poor?s 500 Index rose 0.6 percent, and Europe?s Dow Jones Stoxx 600 Index added 0.6 percent, heading for its fourth day of gains.
The dollar fell against all of the 26 major developing- market currencies today, dropping 1.3 percent to 1,995 Colombian pesos and decreasing 1.4 percent to 187.04 Hungarian forints.
The greenback?s role in international trade should be reduced by establishing a new currency to protect emerging markets from the ?confidence game? of financial speculation, the Geneva-based United Nations Conference on Trade and Development said yesterday in a report.
China, India, Brazil and Russia this year called for a replacement to the dollar as the main reserve currency after the financial crisis sparked by the collapse of the U.S. mortgage market led to the worst global recession since World War II.
The pound rose 1 percent to $1.6512 after the Office for National Statistics in London said factory output rose 0.9 percent in July, compared with a 0.3 percent median forecast of 27 economists surveyed by Bloomberg News. Sterling depreciated 0.1 percent to 87.77 pence per euro.
The euro?s 3.1 percent gain against the pound in the past month may erode as Europe?s yield advantage against the U.K. narrows, wrote Greg Gibbs, a currency strategist at Royal Bank of Scotland Group Plc in Sydney, in a research report today.
The two-year German note yield was 0.14 percentage point above the rate of the comparable-maturity U.K. security today, narrowing from a seven-month high of 0.48 percentage point on Aug. 21.
Source
Deficits do matter people. Please tell your Congressman/woman that we do care, and it's time to bring this spending under control.
---------------
Sept. 8 (Bloomberg) -- The dollar declined to the lowest level this year against the euro as the prospects for economic recovery spurred a rally in global stocks, helping to push gold above $1,000 an ounce and oil to more than $70 a barrel.
The greenback also fell the most against the currencies of six major U.S. trading partners since July as the dollar became the cheapest funding currency in the London interbank lending market. The Brazilian real and South African rand rallied more than 25 percent this year as investors sought higher-yielding assets in emerging-market nations.
?You are seeing a reversal of flight to quality as investors start to put money into higher-yielding assets,? said Warren Naphtal, who oversees $915 million in currency assets as chief investment officer in Weston, Massachusetts at P/E Investments, an asset-management company. ?The U.S. dollar is a good source for cheap funding.?
The dollar depreciated 1.3 percent to $1.4520 per euro at 12:34 p.m. in New York, from $1.4332 yesterday, after earlier reaching $1.4522, the weakest level since Dec. 18. The U.S. currency dropped 1 percent to 92.17 yen, from 93.08, and slid 1.5 percent to 1.0444 Swiss francs. The euro advanced 0.3 percent to 133.81 yen, from 133.39.
The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against currencies including the euro, yen and franc, fell as much as 1.2 percent to 77.047 today, the lowest level since Sept. 29. It was the biggest intraday drop since July 31.
The three-month London interbank offered rate for dollars fell to 0.30 percent today, from 0.31 percent yesterday, according to the British Bankers? Association. The borrowing cost dropped below that of the Swiss franc, which was at 0.31 percent, for the first time since November, making the dollar the cheapest currency for investors to fund purchases of higher- yielding assets. The corresponding rate for funds in yen was 0.37 percent, increasing its advantage to the widest level since January 1993.
?The dollar is the predominant funding currency,? said Todd Elmer, currency strategist at Citigroup Inc. in New York. Elmer advises his clients buy the Canadian dollar versus the yen and the Norwegian krone against the franc to cash in on the improvement in ?risk sentiment.?
Traders are betting on longer-term declines in the dollar after the U.S. budget gap reached $1 trillion. Forward contracts show the greenback weakening to $1.49 per euro in the next 10 years, compared with an average of $1.17 since the single European currency was introduced in 1999.
The Commerce Department will report the trade balance for July on Sept. 10. The median forecast of 62 economists in a Bloomberg News survey is for a deficit of $27.3 billion. While that would be improved from $64.9 billion a year earlier, the trade balance has been little changed since February.
Trade feeds into the broader current-account balance, which includes transfer payments and investment income and stood at a negative $101.5 billion in March. While the gap has narrowed from a record $214.8 billion in September 2006, it?s still above the average of $63.2 billion over the past 30 years and means the U.S. needs to attract about $1 billion a day in new foreign capital for the dollar to maintain its value.
The real gained 1 percent to 1.8246 versus the dollar today and the rand climbed 0.7 percent to 7.5250 on bets investors will increase trades in which they sell the currencies of nations with low borrowing costs and buy assets in developing nations where returns are higher. The U.S. target lending rate of zero to 0.25 percent compares with 8.75 percent in Brazil and 7 percent in South Africa.
The Standard & Poor?s 500 Index rose 0.6 percent, and Europe?s Dow Jones Stoxx 600 Index added 0.6 percent, heading for its fourth day of gains.
The dollar fell against all of the 26 major developing- market currencies today, dropping 1.3 percent to 1,995 Colombian pesos and decreasing 1.4 percent to 187.04 Hungarian forints.
The greenback?s role in international trade should be reduced by establishing a new currency to protect emerging markets from the ?confidence game? of financial speculation, the Geneva-based United Nations Conference on Trade and Development said yesterday in a report.
China, India, Brazil and Russia this year called for a replacement to the dollar as the main reserve currency after the financial crisis sparked by the collapse of the U.S. mortgage market led to the worst global recession since World War II.
The pound rose 1 percent to $1.6512 after the Office for National Statistics in London said factory output rose 0.9 percent in July, compared with a 0.3 percent median forecast of 27 economists surveyed by Bloomberg News. Sterling depreciated 0.1 percent to 87.77 pence per euro.
The euro?s 3.1 percent gain against the pound in the past month may erode as Europe?s yield advantage against the U.K. narrows, wrote Greg Gibbs, a currency strategist at Royal Bank of Scotland Group Plc in Sydney, in a research report today.
The two-year German note yield was 0.14 percentage point above the rate of the comparable-maturity U.K. security today, narrowing from a seven-month high of 0.48 percentage point on Aug. 21.
Source
Facebook
Twitter