De dag dat de dollar viel #12: Zhe crisis havs returned!

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Op dinsdag 6 november 2007 07:05 schreef Evil_Jur het volgende:

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200 mld op wat? Is het bijvoorbeeld meer dan met de internet-bubbel?

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Op dinsdag 6 november 2007 11:03 schreef Papierversnipperaar het volgende:
Op dailyfx staat een "All-time high" van 1,4527 waar we ondertussen al overheen zijn geweest. Is dat die "high" van voor de invoering van de euro?

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Op dinsdag 6 november 2007 11:24 schreef Grumpey het volgende:
dat was 1,4571 dacht ik...

we naderen dat rap nu.

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

The U.S. currency declined versus all 16 of the most- actively traded currencies except the yen after Fed Governor Randall Kroszner said conditions for subprime-mortgage borrowers may worsen. It dropped the most against the South African rand, falling 1.2 percent.

``The dollar will continue to weaken because the rate differentials move against the dollar,'' said Marcus Hettinger, a currency strategist at Credit Suisse Group in Zurich. ``The subprime issue is negative because it increases the probability that the Fed will ease again.''

The U.S. currency dropped to an all-time low of $1.4556 per euro before trading at $1.4547 as of 7:03 a.m. in New York, from $1.4469 late yesterday. The dollar may fall to $1.46 in the coming days, Hettinger said.

Against Australia's currency, the dollar declined to as low as 92.66 U.S. cents, compared with 92.07 late yesterday in New York. The U.S. currency fell to 92.59 cents against its Canadian counterpart, from 93.33 cents yesterday, and to 6.5013 rand, from 6.5900. It was at $2.0878 against the pound, near a 26-year low of $2.0897. The dollar traded at 114.72 yen, from 114.55 yen.

Dollar Assets

``Conditions for subprime borrowers have the potential to get worse before they get better,'' Kroszner, the Fed's chief liason officer with the banking industry, said in remarks delivered to conferences in Arlington, Virginia and Washington yesterday. Bank of England Governor Mervyn King said today in a BBC Radio 4 interview it may take months before commercial banks publish their full losses from the U.S. subprime-mortgage slump.

``The rolling credit crisis and lack of confidence in the U.S. financial sector is heightening fears for the broader U.S. economy,'' said Greg Gibbs, a currency strategist in Sydney at ABN Amro Holding NV, the biggest Dutch bank. ``The broader outlook for the dollar still looks very challenged.''

The yen fell against all 16 of the most-actively traded currencies as rising Asian stocks fueled investor demand for higher-yielding assets financed by loans in Japan, where the benchmark borrowing cost is 0.5 percent.

`Risk Appetite'

``With stocks rising, speculative players are buying'' major currencies against the yen, said Toru Tanaka, senior manager of treasury and foreign exchange in Tokyo at Mitsubishi Corp., Japan's largest trading company. ``Those investors have a lot of money and represent risk appetite.''

The Morgan Stanley Capital International Asia Pacific Index of regional shares climbed 0.4 percent.

The yen declined to 166.74 per euro from 165.73 yesterday, and may fall to 166.80 per euro today, Tanaka forecast.

U.S. Treasuries offer the lowest yields among the Group of Seven nations after Japan as the Fed cut interest rates last week for the second time. The dollar has dropped against all of the 16 most-active currencies this year, falling almost 26 percent versus the Canadian dollar, 22 percent against the Brazilian real and 17 percent versus the Norwegian krone.

The dollar will slide further as the prospect of lower Fed rates prompts investors to shift assets into higher-yielding currencies, according to BNP Paribas SA.

``People no longer see the U.S. dollar as a high-yielding currency,'' said Sharada Selvanathan, currency strategist in Hong Kong at BNP Paribas, the largest French bank. ``They'd rather switch into other currencies where the economic fundamentals are better and where they can also gain higher yield,'' such as Australia's dollar.

Australian Rate Decision

The Reserve Bank of Australia will raise rates a quarter- percentage point to 6.75 percent tomorrow, according to all 27 economists surveyed by Bloomberg News. The decision is due at 10:30 p.m. London time.

The spread on yields for two-year German government notes over similar-maturity Treasuries widened to 26 basis points, near the highest since April 2004, from 15 basis points a week earlier. A basis point is 0.01 percentage point.

The falling dollar isn't cause for alarm, according to David Rosenberg, chief North American economist at Merrill Lynch & Co. in New York.

``The dollar is no lower today than it was in 1997,'' Rosenberg wrote in a Nov. 2 research note. ``We don't remember that being a particular Armageddon-type time period.''

Greenspan on Dollar

The Fed's broad dollar index, which measures the value of the currency against a basket of currencies of the U.S.'s 26 major trading partners, was at 99.80 at the end of October, the lowest since December 1996.

Former Federal Reserve Chairman Alan Greenspan said the U.S. currency is unlikely to weaken further against the euro, though over the long term it will fall against Asian currencies.

``The euro-U.S. currency adjustment is already finished,'' Greenspan said at a forum in Tokyo, according to Richard Tabor Greene, a professor at Kwansei Gakuin University in Osaka who attended the event.

The dollar is 12.5 percent weaker against the euro than a year ago, compared with a 3 percent slide against the Japanese yen and a 5.4 percent drop against the Chinese yuan.

Interest-rate futures traded on the Chicago Board of Trade show a 62 percent chance the Fed will reduce its overnight target lending rate between banks by a quarter-percentage point to 4.25 percent on Dec. 11 compared with 6 percent a month ago.

The euro may extend gains against the dollar on speculation European Central Bank President Jean-Claude Trichet will signal rates may rise further to rein in inflation from a two-year high.

ECB on Hold

The ECB will keep its key rate at 4 percent on Nov. 8, according to a Bloomberg News survey. Trichet will meet the press after the bank's decision. The euro has gained 23 percent since the ECB raised rates eight times, starting in December 2005.

``Money will continue to flow into the euro,'' said Kengo Suzuki, currency strategist in Tokyo at Shinko Securities Co., which agreed to be taken over by Japan's second-largest publicly traded lender Mizuho Financial Group Inc. ``The ECB will want to keep the option of raising rates.''

The euro may rise to $1.50 by year-end, he forecast.

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Op dinsdag 6 november 2007 16:36 schreef Grumpey het volgende:
we waren een paar uur geleden precies 0.0001 ( [afbeelding] )verwijderd van een all-time high van de munteenheid in nederland tov de dollar, en zou de euro sterker zijn geweest dan de gulden ooit geweest is.
Nu is het alweer iets lager inmiddels.

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Op dinsdag 6 november 2007 16:36 schreef Grumpey het volgende:
we waren een paar uur geleden precies 0.0001 ( )verwijderd van een all-time high van de munteenheid in nederland tov de dollar, en zou de euro sterker zijn geweest dan de gulden ooit geweest is.
Nu is het alweer iets lager inmiddels.

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Op dinsdag 6 november 2007 23:13 schreef venomsnake het volgende:
Markets fear banks have $1 trillion in toxic debt

Central bankers see more pain for U.S. economy

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Op woensdag 7 november 2007 00:08 schreef HiZ het volgende:

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Wat was dat bedrag dan precies ?