US dollar touches a new euro low

[TechBear_Seattle]

Forget about the stock markets; changes of 1% and 2% are normal volatility and do not reflect the strength or weakness of the US economy. THIS, however, is very alarming: the US dollar is spiralling down faster that the ratings of both Bush and Congress.

US dollar touches a new euro low

The US dollar tumbled to a new euro low in Asian trade as concerns over the state of the US economy deepened.
The euro traded as high as $1.4348, breaking its last record set on Friday when one euro bought $1.4319.

The sell-off was triggered on Friday by a profit warning from building equipment giant Caterpillar, prompting concerns over the slowing US economy.

But the dollar bounced back to trade at $1.4228 against the euro bloc's currency by midday in London.

The greenback also slipped to a six-week low againt the Japanese yen on Monday, touching 113.25 yen at one point, and was trading at $2.0357 against the British pound.

The dollar could weaken further if the US Federal Reserve cuts interest rates again at its meeting at the end of the month, making the US currency less attractive for income seekers.

The full article is available at http://news.bbc.co.uk/2/hi/business/7055863.stm

[MADem]

1. Jesus, that's a HORRIBLE exchange rate--unaffordable!!!!

How long before foreigners decide they can afford to buy themselves a little house in America?? That may be where the tide of cash comes back in...!

[Jemmons]

2. Just vote GOP and they will stay away n/t

[spindrifter]

3. I guess it will take a Democrat to

fix this mess. I would start by taking back all of those tax benefits for hedgefund execs and all of those benefits B*sh gave to his other rich buddies who were supposed to use the money to create jobs. I'd also start regulating loans. If they aren't regulated, people lose confidence....and the spiral begins.