Dollar Falls to Record Low

Discussion in 'Economy' started by JeffWartman, Nov 6, 2007.

  1. JeffWartman
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    JeffWartman Senior Member

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    The dollar is falling, and there seems to be no end in sight. If you actually believe we are in good economic shape, I suggest you take an Intro to Macro course.


    Full story: http://www.bloomberg.com/apps/news?pid=20601087&sid=ar3a9gqZqBLk&refer=worldwide
    Dollar Falls to Record Low Versus Euro; Fed May Lower Rates

    By Bo Nielsen and Min Zeng

    Nov. 6 (Bloomberg) -- The dollar fell to a record low against the euro on speculation financial-company losses from U.S. subprime-mortgage defaults will grow, prompting the Federal Reserve to cut interest rates for a third time this year.

    The U.S. dollar declined versus all 16 of the most-actively traded currencies after Fed Governor Randall Kroszner said conditions for subprime-mortgage borrowers may worsen. The dollar fell against high-yielding currencies, including 1.2 percent drops versus the Brazilian real and South African rand.

    ``The dollar is undermined by growth and interest-rate differentials,'' said Samarjit Shankar, director of global strategy for the Global Markets group in Boston at Bank of New York Mellon, the world's largest custodian bank with over $20 trillion in assets under administration. ``The U.S. is the epicenter of the subprime crisis.'' .....
     
  2. Toro
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    Toro Diamond Member

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    The world is going to soon find out that the subprime crisis is not confined to th US.

    The dollar is waaaaaay oversold. Its getting ridiculous.
     

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