Dollar falls against euro, yen - Mercedes-Benz Forum

LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 03-17-2008, 11:03 AM Thread Starter
CH4S Artist
Teutone's Avatar
Date registered: Sep 2004
Vehicle: 1985 500SEC, 1991 190E 2.6.
Location: Los Angeles / Hannover Germany
Posts: 33,438
Mentioned: 11 Post(s)
Quoted: 937 Post(s)
Lifetime Premium Member
(Thread Starter)
Dollar falls against euro, yen

Dollar falls against euro, yen
By MATT MOORE, AP Business Writer
2 hours, 8 minutes ago

The dollar fell to record low against the euro on Monday, and sank to its lowest level in more than 12 years against the Japanese yen as investors reacted to the latest emergency rate cut by the U.S. Federal Reserve and to news that JPMorgan Chase is buying rival investment bank Bear Stearns for a fraction of what it was worth last week.

In European trading, the euro rose as high as $1.5904 but soon fell back to $1.5746. That was still above the $1.5687 it bought late Friday in New York trading.

The U.S. Commerce Department said that the deficit in the current account dropped by 9 percent last year to $738.6 billion. Later, the Fed said U.S. industrial output fell half a percent in February, the biggest amount in four months.

The dollar fell as low as 95.72 Japanese yen, its lowest since August 1995, before recovering to 97.03 yen but still below the 99.21 yen it bought in New York on Friday. The dollar broke below 100 yen just last Thursday.

The lows came a day after the Fed approved a cut in its emergency lending rate to financial institutions to 3.25 percent from 3.5 percent.

Also on Sunday, JPMorgan Chase & Co. said it would acquire Bear Stearns for $236.2 million in a deal backed by the Fed. JP Morgan will pay $2 per share, down from Bear Stearns closing price of $30 per share on Friday.

"It has certainly been something of an historic weekend, with an emergency Fed rate cut and news that J.P. Morgan intends to acquire Bear Stearns marking the next chapter in the credit crisis," said James Hughes of CMC Markets in London.

"Unsurprisingly this has been broadly bad news for the dollar with (the) euro-dollar managing a short-lived breach above 1.5900 — yet another all-time record high — although this has been short lived with profit takers stepping in," Hughes said.

The Fed is scheduled to meet Tuesday, and analysts are predicting that the central bank could reduce its 3 percent benchmark rate on overnight loans between commercial banks by as much as another percent.

The European Central Bank, by comparison, has left its own rate at 4 percent as inflation in the 15-nation euro zone hit yet another record high last month.

Lower interest rates can jump-start a nation's economy, but can also weigh on its currency as traders transfer funds to countries where they can earn higher returns.

So far the ECB has remained steadfast in keeping its rates unchanged because inflation has been so high, but politicians and some companies have bemoaned the strong euro because it makes goods produced in the euro zone far more expensive elsewhere and undermines exports.

However, at the same time, the higher euro can increase domestic purchasing power.

The Bank of England said Monday it will offer an extra 5 billion pounds — around $10.1 billion — of reserves into the short-term money market because of conditions in the market.

The dollar rose against the British pound, which fell to $2.0059 from $2.0218 on Friday.

Copyright © 2008 The Associated Press.
Teutone is offline  
Sponsored Links

  Mercedes-Benz Forum > General Mercedes-Benz Forums > Off-Topic

Quick Reply

Register Now

In order to be able to post messages on the Mercedes-Benz Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Please enter a password for your user account. Note that passwords are case-sensitive.


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:


  • Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
    Thread Tools
    Show Printable Version Show Printable Version
    Email this Page Email this Page
    Display Modes
    Linear Mode Linear Mode

    Similar Threads
    Topic Author Forum Replies Last Post
    Dollar falls again, euro zone divided Teutone Off-Topic 18 03-03-2008 09:00 AM
    Maybe the Dollar does not recover so quick...... ECB Has Interest in Strong Euro Jakarta Expat Off-Topic 0 11-24-2007 07:32 AM
    Euro displaces dollar in bond markets Jakarta Expat Off-Topic 2 01-15-2007 06:39 AM
    Iran to replace dollar with euro in foreign deals Jakarta Expat Off-Topic 7 12-18-2006 02:00 PM
    Dollar vs. Euro and 2006 SLK prices GernBlansten R171 SLK-Class 5 01-01-2005 06:05 AM

    Posting Rules  
    You may post new threads
    You may post replies
    You may not post attachments
    You may not edit your posts

    BB code is On
    Smilies are On
    [IMG] code is On
    HTML code is Off
    Trackbacks are On
    Pingbacks are On
    Refbacks are On


    Title goes here

    video goes here
    description goes here. Read Full Story
    For the best viewing experience please update your browser to Google Chrome