U.S. Dollar Hits All-Time Low Vs. Euro @$1.33.35

Forbes ^ | 11.30.2004 | Associated Press

[M. Espinola]

The dollar hit a new all-time low against the euro, which rose to $1.3335 on Tuesday as new figures showed that U.S. economic growth in the third quarter was stronger than previously estimated.

In late New York trading, the euro eased back to $1.3280, below its intraday high but still above Monday's late rate of $1.3273.

The dollar's weakness has been fueled by concern over the U.S. trade and budget deficits, and analysts say markets are paying only limited attention to other economic data against that background.

The dollar hit its low against the euro, whose previous record of $1.3329 was set Friday, shortly after European Central Bank President Jean-Claude Trichet renewed his assertion that the euro's rapid rise against the U.S. currency is "unwelcome."

Despite Trichet's attempt to talk the euro down, the dollar ended mixed against rivals on Tuesday, falling against the euro, British pound and Swiss franc, but strengthening slightly against the Japanese yen and Canadian dollar. The pound was quoted at $1.9107 from $1.8940 late Monday, while the dollar bought 103.03 yen, up from 102.82; 1.1392 Swiss francs, down from 1.1422; and 1.1879 Canadian dollars, up from 1.1838.

[M. Espinola]

Euro Chart

[Dog Gone]

Just when you think French wine sales to the US couldn't drop any further...

[FITZ]

I don't see how it's going to help with the job situation too much because Chinese labor is still much cheaper. We'll have higher prices for things we must import like oil.

Maybe Mexico will come along and bail out the dollar like we always bail out the peso when we think it's fallen --- we believe that currency must keep it's value but the dollar can fall.

[Solamente]

Correct me if I'm wrong, but in the last 10-15 years the dollar would seasonally dip to 1.35-1.40 against the British Pound, then go up to 1.80+?

That it dipped 2 cents does not seem such a big deal!?

[traumer]

We are doomed - seriously

[Dog Gone]

The weak dollar is a deliberate strategy on our part. We don't want anyone bailing us out.

Yes, it has increased the price of oil for us. That's about the only downside, though. It's jumpstarted the economy and it's even caused a dramatic upturn in the amount of drilling we are doing domestically.

If we want to strengthen the dollar, we'll just start moving interest rates back up. They're still ridiculously low. However, my 3.75% fixed mortgage interest rate is going to look even better when that happens.

[conservativecorner]

Let it fall. The administration has been talking down the dollar for a good while so that our trade imbalance would show an improvement, and it fights deflation because it makes foreign goods more expensive. I still believe the watch word at the Fed is deflation even when they talk inflation.

[SubMareener]

George Soros eve of destruction alert! Just sit back and enjoy this one. The Federal Government brought a lot of really smart folks in for the financial part of the GWOT. This would just be a side show for them.

By the way, The Chinese export currency, the Yuan, is pegged to the Dollar! These folks are not dumb!

[mdittmar]

WOW,President Bush in Canada,this headline,"U.S. Dollar Hits All-Time Low".

Reminds me of a "A Canadian's Opinion"

[FITZ]

But then why do we bail out the peso when we think it's getting weak --- if weak is good then wouldn't Mexico be better off with the peso going low? Why is it good for the dollar to lose it's value but not for liras or pesos to lose their value?

[OneTimeLurker]

Um George Soros has been short the Dollar for some time. I don't think he is going to self destruct unless it's from making too much money.

[bayourod]

"my 3.75% fixed mortgage interest rate "

You Dog! Which Texas lender?

[Always Right]

Meanwhile, Europe has a 12% unemployment rate and piss poor productivity.....I'll take the US economy and the dollar any day of the week.

[elhombrelibre]

It's good if we want to sell American products abroad; it's bad if you want to buy a product from the Euro-Zone.

[Retief]

Those Euro-weasels sure aren't going to be selling many BMW's or Mercedes in the US, or much of anything else with the Euro that high.

In contrast, Dell and HP computers are as cheap and ever, and will be selling like hotcakes everywhere.

[Dog Gone]

The couple of times we did that, the peso was on the edge of collapse. That would have meant economic chaos and a flight of Mexicans across our border that would make today's horrendous rate seem like a trickle.

Basically we bailed out their entire banking system. There is no banking crisis here so it's wrong to compare the two situations.

Mexico imports most of its durable goods, so a strong peso helps them.

[SubMareener]

Let us wait and see how this turns out.

[oceanview]

europe is not the problem here, we cannot solve our trade deficit on the backs of europe and japan.

its china that is the problem here, and their currency peg means that these dollar moves mean nothing against them.

once the yuan peg is broken, the dollar will balance out against the euro and the yen.

[FITZ]

and it fights deflation because it makes foreign goods more expensive.

I thought the whole purpose of the free trade that's been crammed down our throats was so that foreign goods would become cheap and we would somehow benefit from that. Now you mean to tell us that foreign goods becoming more expensive is really the way to go?