US Dollar hits all-time low against Euro

it's looking like the dollar/euro will be at $135.00 before the year is over.
right now the dollar has fallen again, with the euro/usd bid being at $134.92 and ask at $134.95

while money is being made by betting against the dollar, I am really hoping for a drop in the euro to at least $132.00

What effect in Europe is the over-valued Euro having? Rumors abound on everything from inflation to the high cost of living to crippling the economy...
Basically, the under-valued "weak" dollar really affects who worse?
I see a strategy being played out here....




seekerof

Originally posted by Seekerof
What effect in Europe is the over-valued Euro having? Rumors abound on everything from inflation to the high cost of living to crippling the economy...
Basically, the under-valued "weak" dollar really affects who worse?
I see a strategy being played out here....
seekerof

i kinda of see the strategy that may be playing out, but I think the strategy has serious flaws. The Europeans will definitely be hurting but in the same hand while there are some benefits to Americans, I feel that the negatives outweighs the benefits of a weak US dollar to economies all around the world. It not only the US that relies on the dollar to back its economy, many third world countries, especially those in the caribbean rely heavily on a strong dollar.

btw the forex did see $135.06 as the high for today so far. I wonder how far this could possibly go?

right now it's back in the .90's but it seems like soon we'll be testing $136.00 (hopefully not till next week)

[edit on 12-23-2004 by worldwatcher]

I just read on a news site that economists are expecting it to hit 1.40 during 2005. Can provide a link if needed.

"US Dollar hits all-time low against Euro"

Well I for one consider this good news, I do not use the US dollar and I stopped buying any US or UK products a while ago out of pure disgust for what they currently represent.

I hope the US dollar plumets further.

It hit yet another new high today.

Reuters
The euro traded as high as $1.3546 by 1205 GMT, according to Reuters data, up 0.2 percent on the day.

It also rose against the yen to 140.30 yen, close to recent 18-month highs above 140.50.

The dollar traded at around 103.60 yen, unchanged from late U.S. trade and at the lower end of recent ranges.

The euro was at 70.24 pence, close to one-year highs against sterling set Thursday on speculation that the next British rate move will be a cut

$1.40 doesn't seem that unlikely for next year if the trend continues.

Originally posted by worldwatcher
right now it's back in the .90's but it seems like soon we'll be testing $136.00 (hopefully not till next week)

$1.36 has now been broken for the first time.


Dollar fall for the year 2004

dailyFX

Once again thinned volume coupled with strong demand pushed the euro even higher during the session. Trading at $1.3540 in New York before the Christmas weekend, traders bid the currency higher, as it hit record highs of $1.3640 today. The advance looks to be a result of increasing speculation that intervention attempts may not be as forthcoming on either side of the Atlantic as earlier hinted. Additionally, statements released late last week fed this sentiment as European Central Bank council member Quaden commented that the recent currency appreciation hasn't been "too worrisome" as the effects have muted the costs of rising crude oil prices, although simultaneously hurting exports.

Where is the bottom for this?
$140?
$150?

Bummer, it seems the US dollar is just plummeting further and further.

$1.3643......when is this going to stop???

any ideas of where this dollar is go to? If no one reigns this in $1.40 is going to be nothing.

I expected that we would hit $1.36 this week but I didn't think it would happen this fast and and now it looks like we might be testing $1.37, this week.

Originally posted by Indy
Well thats kind of the problem. Thats about the only thing we are good for. Fast food and junk. We make large cars which the rest of the world won't buy. Is there anything that we do make that the rest of the world wants?

Big Mining machines comes to mind real fast. BE and P&H have order backlogs for the next 3 to 4 years.

Goldman predicts weak Dollar



Precious metals investors may take some inspiration from this article. It dovetails with news of Goldman rapidly covering their short-of-gold contracts on the Tokyo Commodity Exchange...over 70% in the last three months! I guess they've known for a while what many are just discovering. Fed injections and lower interest rates will add fuel to an inflationary fire, and ultimately, the fate of the US dollar will lie mostly in the hands of foreign nations. With the ink still wet on the last of the subprime mortgages, the global liquidity monster is being pumped to new dimensions. It won't be long before it roams the planet in search of the next hot market to inflate. My bet is that a-lot of it will find it's way into commodities and precious metals this time...and much of it will accompany the $ already being repatriated to foreign shores.