The dollar extended its rally to hit a nine-month high against the euro on Monday as traders shrugged off a meeting of G8 finance ministers and focused on the prospect of U.S. interest rates heading even higher.
The U.S. currency also hit a nine-month peak versus a basket of major currencies after data on Friday showed an unexpectedly smaller trade deficit in April -- one of the main drivers of the dollar's three-year decline to the end of 2004.
Dealers said the dollar was still riding high after Federal Reserve Chairman Alan Greenspan said last week the U.S. economy was on a "firm footing" and suggested interest rates still had room to rise.
"This has set the stage for a dollar-positive environment," said Tomoko Fujii, senior currency strategist at Bank of America in Tokyo. During a meeting on Friday and Saturday, finance ministers of the Group of Seven industrialized nations plus Russia (G8) kept up pressure on developing Asian economies, particularly China, to adopt market-based exchange rates.
But the meeting produced no clues as to when China will relax the yuan's 8.28 per dollar peg. Many analysts expect such a move would prompt other Asian governments to cut back on interventions designed to stem any export-damaging appreciation in their currencies.
Adding fuel to the dollar's sharp rise, data on Friday showed the U.S. trade deficit was smaller than forecast at $56.96 billion in April, though still the fourth-biggest on record.
At 0531 GMT the euro fetched around $1.2110 after falling as far as $1.2065, its lowest mark since Sept. 8. In just three months the euro has dropped roughly 14 U.S. cents, or 10.5 percent.
The dollar was slightly down at 108.50 yen after rallying 1.2 percent on Friday in its biggest daily gain in more than four months.
DOLLAR GAINS NOT OVER
A rise above 108.90 yen would carry the dollar to its highest level against the Japanese currency since October.
Technical charts suggest a rise above 109 yen could then propel the dollar as high as 112 yen in the near term, said Mitsuo Imaizumi, forex manager at Daiwa Securities SMBC.
The euro's losses have gathered momentum in the past two weeks after voters in France and the Netherlands rejected a new European constitution, throwing into question the future of European political and monetary integration.
A series of sluggish economic data from the euro zone has also heightened speculation that the European Central Bank's next move may be an interest rate cut. It has kept rates at 2 percent since June 2003.
In contrast, the Fed is widely expected to raise rates by a quarter percentage point at its next policy meeting on June 29-30, which would be its ninth straight rate rise and take its funds rate to 3.25 percent.
"I think this is only the beginning of the euro's decline," said a dealer at a Japanese bank. "The market's big focus has shifted from the U.S. twin deficits to the euro zone's structural woes."
Dealers said they would take a close look at U.S. inflation data this week for any signs of an up-tick in prices, which could lead the Fed to raise rates at an even faster pace to ward off inflation.
The U.S. Producer Price Index for May is due on Tuesday, while the Consumer Price Index is slated for Wednesday. (Additional reporting by Eric Burroughs and Shiho Tanaka)
Dollar hits 9-mth high vs euro
Dollar hits 9-mth high vs euro
Go Go Dollar! Need cheap Euro vacations and cheap Japanese electronics.
seeing as how it has EVERYTHING to do with the global economy, then yes, it is very important. it indirectly effects everyone, even you. just because this isn't another insurgent kills a civilian thread for you to go shit on, doesn't mean its not important. if you had any grasp on economics you would see how just how big this really is. is it groundbreaking news? no, but it is a very big point of interest to some of us. especially those of us who invest our money.
try going to school instead of making baseless retarded statements about things you have no idea about, you fucking drug addled dumbass.
try going to school instead of making baseless retarded statements about things you have no idea about, you fucking drug addled dumbass.
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landertime
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Look Zamtuk I am perfectly well aware of how relevant it is to the oh so godlike economy.
Take your drug addled baseless statements and fuck off with them. They are, bluntly, factually innacurate.
The thing is, if I posted every time the pound here was raping the dollar most of the forum would be taken up with it. That is why it's just an irrelevant post.
Oh, and sorry you feel it's a bad thing to rant about mass murder, that's quite the mindset you have mate. How about you go and invest in a fucking soul.
lol@fuckoffbacktoschool
Take your drug addled baseless statements and fuck off with them. They are, bluntly, factually innacurate.
The thing is, if I posted every time the pound here was raping the dollar most of the forum would be taken up with it. That is why it's just an irrelevant post.
Oh, and sorry you feel it's a bad thing to rant about mass murder, that's quite the mindset you have mate. How about you go and invest in a fucking soul.
lol@fuckoffbacktoschool
Ah. NOW I get it! It was the caps that did it for me. Finally my eyes have been opened.Trias wrote:IF NICK SAYS IT IS IRRELEVANT THEN IT MUST BE TRUE; STOP WITH THE POSTING OF IRRELEVANT TOPICS KTHNXThat is why it's just an irrelevant post.
YOU FUCKERS JUST DON'T GET IT
HI SEEB
Have You Hugged An Iksar Today?
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Kilmoll the Sexy
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Kilmoll the Sexy
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Kilmoll the Sexy
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being as you are a Canadian, I figured you would realize it could not be directed at you. Also, you know me well enough to specifically call you an asshat by name if I did need to direct something derogatory your way.miir wrote:Sorry, I didn't get that memo.Kilmoll the Sexy wrote:that would be teeny
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Jice Virago
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Recent reversions of Russia and a complete withdrawal from the global community by the US have pretty well shook the shit out of the EU, which is great for all interested parties (read power hard line ex soviet power grabbers and US Military/Industrial interests) but probably not so hot for global stability. The Caveat is of course that the EU had enough of its own problems to begin with, so its hard to feel sorry for that situation. I feel this sense that the whole world is sliding right back into the 80s era cold war, complete with the original players.
War is an option whose time has passed. Peace is the only option for the future. At present we occupy a treacherous no-man's-land between peace and war, a time of growing fear that our military might has expanded beyond our capacity to control it and our political differences widened beyond our ability to bridge them. . . .
Short of changing human nature, therefore, the only way to achieve a practical, livable peace in a world of competing nations is to take the profit out of war.
--RICHARD M. NIXON, "REAL PEACE" (1983)
"Every gun that is made, every warship launched, every rocket fired, represents, in the final analysis, a theft from those who hunger and are not fed, who are cold and are not clothed. This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children."
Dwight Eisenhower
Short of changing human nature, therefore, the only way to achieve a practical, livable peace in a world of competing nations is to take the profit out of war.
--RICHARD M. NIXON, "REAL PEACE" (1983)
"Every gun that is made, every warship launched, every rocket fired, represents, in the final analysis, a theft from those who hunger and are not fed, who are cold and are not clothed. This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children."
Dwight Eisenhower
From what I have read of the rejection of the EU constitution in France and the Netherlands it is more a matter of internal EU issues. The dominant reason generally given for France's no vote is that it was believed to be too economically liberal. The Netherlands rejection supposedly was more based on annoyance at paying more per capita into the EU and also that they actually instituted some economic measures established by the EU that were somewhat painful (at least in the short term) but when it came time for France and Germany to do so they basically ignored them.
No nation was ever ruined by trade.
– Benjamin Franklin
– Benjamin Franklin
The frogs aren't too happy about this constitution being a gateway for Turkey into the EU either; it would be like adding Mexico to the US.
Add to that economic rationale, the French Armenians still being a little upset about Turkey killing 1-1.5 Million Armenians back in 1915 (http://www.forbes.com/home/feeds/afx/20 ... 51523.html)
Realistically the EU should just give the French and Dutch the finger, create an EU w/ the states that will sign, and carry on. They'll join later.
Add to that economic rationale, the French Armenians still being a little upset about Turkey killing 1-1.5 Million Armenians back in 1915 (http://www.forbes.com/home/feeds/afx/20 ... 51523.html)
Realistically the EU should just give the French and Dutch the finger, create an EU w/ the states that will sign, and carry on. They'll join later.
May 2003 - "Mission Accomplished"
June 2005 - "The mission isn't easy, and it will not be accomplished overnight"
-- G W Bush, freelance writer for The Daily Show.
June 2005 - "The mission isn't easy, and it will not be accomplished overnight"
-- G W Bush, freelance writer for The Daily Show.
Too liberal for umm..one canadian, Lynks (which I could give a flying fuck about).
The fact is, some of you would be hard pressed to acknowledge a factual statement if it was rammed up your gaping assholes. Your overall graps of world perception and what might in fact help the planet, whilst stopping most of the rest of us thinking you are a bunch of stupid cunts, which while pretty straightforward to see, seems to elude your pea sized intellects.
I personally am in no way surprised or annoyed Kilmoll and his merry band of reacharounders think I am a tool, it makes me happy that fucks like you are dying out (or will come the time the bomb drops on your fat asses in your PIMPED UP RIDES BOYEEE!). It's ok don't worry, Jessice Simpson will be there to sing the national anthem for you whilst you all sit eating twinkes at the yankee game and being a good old ALL EMERICEN!
Oh and Seebs if you are looking for some creme filling, I'm sure Kilmoll will do be willing to help you out with that one.
Now, where is that Al'Quaida camp.
..........Yeah, it's a generalisation, and it isn't aimed at you who I respect. It's more for the little peons of handicapped thinking.
The fact is, some of you would be hard pressed to acknowledge a factual statement if it was rammed up your gaping assholes. Your overall graps of world perception and what might in fact help the planet, whilst stopping most of the rest of us thinking you are a bunch of stupid cunts, which while pretty straightforward to see, seems to elude your pea sized intellects.
I personally am in no way surprised or annoyed Kilmoll and his merry band of reacharounders think I am a tool, it makes me happy that fucks like you are dying out (or will come the time the bomb drops on your fat asses in your PIMPED UP RIDES BOYEEE!). It's ok don't worry, Jessice Simpson will be there to sing the national anthem for you whilst you all sit eating twinkes at the yankee game and being a good old ALL EMERICEN!
Oh and Seebs if you are looking for some creme filling, I'm sure Kilmoll will do be willing to help you out with that one.
Now, where is that Al'Quaida camp.
..........Yeah, it's a generalisation, and it isn't aimed at you who I respect. It's more for the little peons of handicapped thinking.
Is Scandinavia really part of Europe or just a huge glacier broken off of the North Pole?Kelshara wrote:They will? Norway is quite happy as a non-memberRealistically the EU should just give the French and Dutch the finger, create an EU w/ the states that will sign, and carry on. They'll join later.