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.

[B4Ranch]

>>I think most Americans do, too.<<

You have set yourself aside from most Americans, simply because you are willing to discuss problems, current events and think. You are not a 'sheeple'! By doing this you will continually become more aware of the little differences in people, problems and solutions.

Political parties, local and state governments, want 'sheeple' who will not question what they are doing. "Just get in line and we will give you your medicine. Everything will be fine, don't worry" is basically what all of them say.

It was enjoyable talikng with you.
Take care.

[B4Ranch]

>>I'd have to see some links or discussion before I'd seriously entertain that it's true.<<

Found it. I knew I had it filed somewhere. This article discusses in detail the changes in estimation methodology.

The GPEU is constantly changing as the error estimates are updated. Small and not very signifigant to you or me but the welfare agencies need the updated numbers for their budgets.

http://stats.bls.gov/lau/laumthd.htm

[Solamente]

Duh! I stand corrected. This is as bad as the time I was on a flight to Ireland via England, ordered a beer, was told it cost a pound-fifty, and I blurted out: "How much is that in REAL money?"

[Always Right]

Found it. I knew I had it filed somewhere.

And as they state, the methods have been in place since 1996. You assertion that unemployment would be 12% is total bunk. But if you want to keep on reading Paul Krugman to get all you information, that's up to you.

[B4Ranch]

I don't recall say 12%, as alarmist as I am, I probably said 20%.

[Sawdring]

Which government pegs it? Do both have to do it and if you can just artificially peg it, why couldn't the US peg its currency to the Euro if it wanted to prevent a slide? And if currency trading is a market and one is able to trade Chinese currency, wouldn't it have to fluctuate at market prices instead of at a fixed price?

[Sawdring]

Which government pegs it? Do both have to do it and if you can just artificially peg it, why couldn't the US peg its currency to the Euro if it wanted to prevent a slide? And if currency trading is a market and one is able to trade Chinese currency, wouldn't it have to fluctuate at market prices instead of at a fixed price?

[CholeraJoe]

All the more reasons to visit countries that don't use the Euro: Britain, Ukraine, Russia, Japan, South Korea.

[Southack]

"It helps the 5% of our economy that exports. It screws the other 95%."

Nonsense. Who told you such rubbish? Go fire your professor dear child!

The U.S. economy is 85% internal (i.e. no impact due to falling Dollar), 9.5% imports (i.e. gets slammed by falling Dollar), and 5.5% exports (i.e. gets a big boost from a falling Dollar).

Now look at our trade imbalance. We import more than we export...and we want to bring that closer in to almost balance with our exports.

The single factor that reduces imports and expands our exports is a falling Dollar.

On the other hand, if you want more Chinese goods on your retail store shelves, then keep hoping for a strong Dollar propped up by a Chinese Yuan to Dollar peg and massive foreign government buying of U.S. Treasuries.

After all, a "strong Dollar" benefits the Chinese and Europeans.

[Dog Gone]

Only the home country has to peg it. If it declares its currency to be worth whatever to the dollar, and is willing to exchange currencies at that rate, there's little the other country can do about that.

I don't know if you can trade the Chinese yuan or not, but there wouldn't be much point in it since it would fluctuate precisely in relation to whatever the dollar was doing at the time.

[Nataku X]

You sir are the voice of reason in these threads.

[Moonman62]

I'm ignoring you.