Dollar Falls to Record Against Euro as EU Inflation Quickens
Apr 16th, 2008, 05:01 AM
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Dollar Falls to Record Against Euro as EU Inflation Quickens
from Bloomberg:
Dollar Falls to Record Against Euro as EU Inflation Quickens
By Ye Xie and Lukanyo Mnyanda
April 16 (Bloomberg) -- The dollar fell to a record low against the euro after a report showed European inflation accelerated in March, reducing chances that the region's central bank will follow the Federal Reserve in cutting interest rates.
The U.S. currency had its biggest decline versus the euro in three weeks, dropping to the record of $1.5969. Crude oil rose to an all-time high of $114.53 a barrel, and U.S. housing starts dropped more than twice as much as forecast in March to a 17-year low.
``There's a big desire to sell the dollar, and the inflation report provided a trigger for new orders,'' said Neil Jones, head of European hedge-fund sales in London at Mizuho Capital Markets, a unit of Japan's third-largest lender by market value. ``The interest rate differential is going to remain in favor of Europe.'' The dollar may fall to $1.60 per euro today, he said.
Against the euro, the U.S. currency dropped 1.1 percent to $1.5959 against the euro at 8:40 a.m. in New York, from $1.5790 yesterday. The dollar decreased 0.7 percent to 101.14 yen, from 101.83. The euro rose 0.4 percent to 161.46 yen, from 160.78.
The dollar has dropped 15 percent against the euro since September as the Fed cut the target lending rate 3 percentage points to 2.25 percent to protect the U.S. economy from the collapse of the subprime-mortgage market.
The euro rose 0.2 percent against the pound to 80.596 pence, after earlier touching 80.76 pence, the highest since the European currency's debut. .....(more)
The complete story is at: http://www.bloomberg.com/apps/news?p...amp;refer=home
Dollar Falls to Record Against Euro as EU Inflation Quickens
By Ye Xie and Lukanyo Mnyanda
April 16 (Bloomberg) -- The dollar fell to a record low against the euro after a report showed European inflation accelerated in March, reducing chances that the region's central bank will follow the Federal Reserve in cutting interest rates.
The U.S. currency had its biggest decline versus the euro in three weeks, dropping to the record of $1.5969. Crude oil rose to an all-time high of $114.53 a barrel, and U.S. housing starts dropped more than twice as much as forecast in March to a 17-year low.
``There's a big desire to sell the dollar, and the inflation report provided a trigger for new orders,'' said Neil Jones, head of European hedge-fund sales in London at Mizuho Capital Markets, a unit of Japan's third-largest lender by market value. ``The interest rate differential is going to remain in favor of Europe.'' The dollar may fall to $1.60 per euro today, he said.
Against the euro, the U.S. currency dropped 1.1 percent to $1.5959 against the euro at 8:40 a.m. in New York, from $1.5790 yesterday. The dollar decreased 0.7 percent to 101.14 yen, from 101.83. The euro rose 0.4 percent to 161.46 yen, from 160.78.
The dollar has dropped 15 percent against the euro since September as the Fed cut the target lending rate 3 percentage points to 2.25 percent to protect the U.S. economy from the collapse of the subprime-mortgage market.
The euro rose 0.2 percent against the pound to 80.596 pence, after earlier touching 80.76 pence, the highest since the European currency's debut. .....(more)
The complete story is at: http://www.bloomberg.com/apps/news?p...amp;refer=home
Apr 16th, 2008, 05:16 AM
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And Henny Penny said to Turkey Lurkey, "The sky is falling! The sky is falling!"
Come on. Get real. This "news" story is so full of exaggerations and distortions that it has no relevance to the real world. Yes, the dollar/euro rate is not as good as it was. So? This is news? Any traveler who cannot find ways to skirt this problem or reduce its impact should stay at home, crawl under the bed, and wait for the sky to fall. Come on! Get real!
Come on. Get real. This "news" story is so full of exaggerations and distortions that it has no relevance to the real world. Yes, the dollar/euro rate is not as good as it was. So? This is news? Any traveler who cannot find ways to skirt this problem or reduce its impact should stay at home, crawl under the bed, and wait for the sky to fall. Come on! Get real!
Apr 16th, 2008, 05:21 AM
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Hi MT,
In Nov 2000 the Euro was worth $0.85
In Nov 2000 oil was about $30/bbl
In Nov 2000 the US National Debt was $5.7T
On Jan 1, 2001 G W Bush was inaugurated.
In Nov 2008 the Euro will be over $1.60, Oil will be about $120 and the ND will be almost $10T.
There are those who say that it wasn't all his fault. I'm not one of them.
In Nov 2000 the Euro was worth $0.85
In Nov 2000 oil was about $30/bbl
In Nov 2000 the US National Debt was $5.7T
On Jan 1, 2001 G W Bush was inaugurated.
In Nov 2008 the Euro will be over $1.60, Oil will be about $120 and the ND will be almost $10T.
There are those who say that it wasn't all his fault. I'm not one of them.
Apr 16th, 2008, 05:48 AM
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About the falling dollar: ”So will this mean an increase in tourism to the US?”
Europeans are breaking down the doors of stores in New York City to shop because of the declining dollar.
As for the beleaguered buck, I’m puzzled by some posters’ need to chart its demise here. (There have been many such bulletins over the past year.) We know what’s going on. Is another depressing report supposed to spur enthusiasm for travel? (I haven’t checked yet but I’m sure someone has, or soon will, report about how the Delta-Northwest merger will cause airfares to skyrocket. And can the United-Continental marriage be far behind? Where’s a trustbuster like TR when you need one?)
I have one emphatic answer to the whole friggin’ mess: I’m going to Italy in 13 days.
Europeans are breaking down the doors of stores in New York City to shop because of the declining dollar.
As for the beleaguered buck, I’m puzzled by some posters’ need to chart its demise here. (There have been many such bulletins over the past year.) We know what’s going on. Is another depressing report supposed to spur enthusiasm for travel? (I haven’t checked yet but I’m sure someone has, or soon will, report about how the Delta-Northwest merger will cause airfares to skyrocket. And can the United-Continental marriage be far behind? Where’s a trustbuster like TR when you need one?)
I have one emphatic answer to the whole friggin’ mess: I’m going to Italy in 13 days.
Apr 16th, 2008, 06:24 AM
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I have a better answer:I've been going to Southeast Asia and India for my vacations the last couple of years(yes,and a more expensive trip to Australia) and am leaving in three weeks for Egypt.I'm bypassing the Euro altogether for a while.
Apr 16th, 2008, 06:38 AM
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Things go up and things go down. When Paris calls I'll return and find a way to economize -- a two star hotel, maybe not in the center, fewer restaurant meals, less shopping, etc.
However, this year I decided to go south and had a wonderful vacation in Chile and Argentina, both beautiful countries with a favorable exchange rate.
Buenos Aires is touted as the "new Paris" but I don't agree, there is only one Paris and BA can stand on its own as a travel destination.
However, this year I decided to go south and had a wonderful vacation in Chile and Argentina, both beautiful countries with a favorable exchange rate.
Buenos Aires is touted as the "new Paris" but I don't agree, there is only one Paris and BA can stand on its own as a travel destination.
