Euro nears 1.40 dollars in record-breaking run

[Up2Late]

Source: AFP

Euro nears 1.40 dollars in record-breaking run

13/09/2007 17h00

LONDON (AFP) - The euro hit a fresh record high 1.3927 dollars Thursday on expectations of a US rate cut next week, while some economists forecast the single currency could top 1.40 dollars very soon.

The European single currency had Wednesday risen above 1.39 dollars for the first time since its creation in 1999, amid persistent fears over the United States economy -- in contrast to the brighter eurozone outlook.

After reaching a fresh all-time high of 1.3927 dollars Thursday, the euro stood at 1.3898, compared with 1.3904 dollars in New York late on Wednesday.

Next Tuesday, the US Federal Reserve is set to slash US borrowing costs from 5.25 percent, dealers said. Amid the countdown to next Tuesday's Fed meeting and expectations of a rate cut, together with an improvement in risk appetite, euro/dollar and other major currencies versus the dollar continue to grind higher," said Commerzbank analyst Gavin Friend....


Read more: http://www.afp.com/english/news/stories/070913105742.ia0jad58.html

---

The News just keeps getting better. :grr:

[Skink]

1. So why is gas 2.65 and oil 80 dollars?

[mahina]

4. because oil is traded in dollars.

[Up2Late]

6. Because we buy Oil with a U.S. Dollar that is falling in value...

...so as the value of the Dollar falls, it takes more of them to buy the same thing, or at least I think that's how it works.

I'm not very good at Math, so some of these figures might be a little off, but I think Oil would be about $40-$45 per barrel now if the Dollar was still strong.

Remember, when Bush was sElected, Oil was about $32.00 per Barrel, <http://www.imf.org/external/pubs/ft/oil/2000> but the Dollar was nearly twice as valuable then too, compared to what it's worth now!

In November 2000, the Dollar/Euro exchange rate was something like $1.36/$.78, almost the exact opposite of what it is now!

Now it's something like $0.71/$1.39!

<http://newsvote.bbc.co.uk/2/shared/fds/hi/business/market_data/currency/12/13/twelve_month.stm>

<http://newsvote.bbc.co.uk/2/shared/fds/hi/business/market_data/currency/13/12/twelve_month.stm>

And the British Pound, which is over $2.00 now, was below $1.50 back then!

<http://news.bbc.co.uk/2/hi/business/903236.stm>

<http://news.bbc.co.uk/2/hi/business/1373713.stm>

[soothsayer]

8. Yup, our dollar is essentially backed by oil

[Skink]

10. So what happens if there is a major threat to the supply of oil?

Like an attack on Iran.

[Up2Late]

12. Not much, other than a lot of BS spewed on Fox and the other Cable "news" channels.

Most of our Petroleum imports come from Canada and Mexico, but they know most don't know that and that most don't understand all the details of the financial markets, so they use that ignorance to scare people, and then make money off of that fear too.

[muriel_volestrangler]

16. I worked out some figures for oil prices in Euros

When priced in euros, oil has not yet reached a new high. Looking at the summer peaks (oil has peaked around the month of August in each of the past 3 years):

2007/9/12: €55.87
2007/8/1 : €55.31
2007/7/1 : €52.62

2006/9/1 : €55.41
2006/8/1 : €59.74
2006/7/1 : €57.72

2005/9/1 : €53.91
2005/8/1 : €49.39
2005/7/1 : €46.85

It's certainly true that the price of oil has varied less over the past 7 years when expressed in euros than in dollars. How much that is 'coincidence', and how much design on the part of producers like OPEC, is difficult to say. Some OPEC members have, I think, said they'd like to use a combination of dollars, euros and yen as the 'currency' in which they aim to keep their price. Effectively, they've been doing that already.

[Up2Late]

25. Thanks, that's about what I thought, but every time I try working out the figures...

...some math wiz posts something nasty about how far off my figures are.

[Harper_is_Bush]

22. See my post below. Your gas s/b costing you WAY more.

I think the reason is your gov't is supporting you...keeping gas cheap by not taxing it.

[Harper_is_Bush]

20. Why isn't your gas $4, I'd like to know. It bloody well should be.

In Canada, it's $1.10 a litre. Work that out, it's about $4 a US gallon.

In Europe it's worse.

So, why do Americans pay so little for gas? It's sick.

[Up2Late]

24. Because we have the Republican Party, who would rather let our country go down crapper before...

...they would raise Taxes, especially Gasoline Taxes for their Hummers.

I think the Petrol Tax here in the State of Georgia total something like $0.19 per Gallon (or $.05 liter).:think:

[feloneous cat]

36. Because we have subsidized oil companies...

OH, and the fact that they charge more when it goes over the border so they can make it cheaper here. Just like the price of diesel is more expensive even though it is cheaper to produce.

Robbing Peter to pay Paul... or in this case, robbing Canada....

Feloneous

[Zhade]

41. Because we're spoiled selfish assholes, that's why.

I'm glad I started riding my bike to work... and I agree with you, we SHOULD pay more. Maybe then all the assholes driving SUVs would think twice.

(And no, I no longer give a fuck if I'm offending an otherwise liberal SUV driver. The Northwest Passage is now navigable for the first time in recorded history, so FUCK your whining.)

[bdamomma]

2. the dollar at a low time low

http://news.bbc.co.uk/2/hi/business/6992570.stm

In European trading, the greenback dropped as low as $1.3927 against the euro, deepening Wednesday's losses.

The dollar has fallen in the past week, amid hopes that Federal Reserve will cut interest rates in a bid to reassure markets over current credit fears.

Analysts expect rates to fall by between a quarter and half a percentage point when the Fed meets next week.

However, as the dollar has weakened, the euro has gained momentum after recent comments from the European Central Bank (ECB) hinting at the possibility of future interest rate rises.

(not good news at all)

[NMDemDist2]

3. i said 6 months ago if you had money it should be in Euros n/t

[mahina]

5. Any suggestions for the next few months?

[NMDemDist2]

7. nope. it's now just a matter of watching the meltdown and hoping

it's too late for gold (it rose like mad a couple weeks ago) and although the Euro train is still in the station, the best seats are gone.

It's never too late to diversify but you'll be jumping on the bandwagon instead of hitching up the horses.

[w8liftinglady]

9. do you anticipate the dollar falling much more?

[NMDemDist2]

11. let me just ask you this

would you buy or hold something that isn't based on real assets? the dollar is going south because we have mortgaged it to the hilt. the only reason it hasn't gone through the basement is because it was the standard currency for oil trades. Iran is getting ready to change that as is Venezuela.

If China gets itchy and starts selling their vast reserves it would get very ugly very fast.

I'm no broker or economist but I'm don't understand why it hasn't fallen further already. TPTB are artificially maintaining the value until they can move into safer territory. For all I hate Cheney, his money is out of dollars in a big way according to articles on DU a few months ago.

http://www.counterpunch.org/whitney07052006.html

[MiniMe]

30. The only reason that it hasn't fallen any further...

is that it would throw all world markets into a tailspin. Once the rest of the world has converted to Euro's, it won't be as much of a factor.

The economy is robust, yeah, thats the ticket. More like the economy is about to bust.

[spinbaby]

13. Sigh

I guess I'll never be able to afford a trip to Europe.

[CTyankee]

15. I'm going to Italy anyway, next May. I just hope it bounces back

before I go. It was more like $1.33 when I was in Rome a little over a year ago. I still have 30 Euro leftover...

[smirkymonkey]

18. F**k. I am leaving for Prague in 2 weeks.

guess I'll have to stick to bread and cheese. I'm starting to worry if I will be able to pay the hotel bill by the time I leave.

[Up2Late]

23. Not to worry, Czech Republic isn't on the Euro yet...

...they have a really crazy exchange rate there.

Hint: 100 czech dollars (or what ever they call their currency) is an AWESOME tip for a Pizza/Pasta lunch.

I know, I made a 18 year old waitress VERY happy in January with a tip like that on a 500$? lunch.:P

edit: here's a link to the exchange rate (I think): <http://www.cnb.cz/www.cnb.cz/en/financial_markets/foreign_exchange_market/exchange_rate_fixing/daily.jsp>

USA dollar 1 USD 19.772

United Kingdom pound 1 GBP 40.098

Slovakia koruna 100 SKK 81.600

Poland zloty 1 PLN 7.265

Here's another that's a little easier to understand: <http://www.myczechrepublic.com/czech-exchange-rates.php>

[smirkymonkey]

40. Actually, I was a little relived there for a while, but then I looked at my

hotel confirm again and it said my cost per night was 160 Euros per night! So now I'm just praying the dollar doesn't completly collapse against the Euro or I may just have to leave early. Or just check out and find a place where they charge in Czech Koruny for the last few nights of the stay (the first 6 days are paid up front and the last 4 I pay when I check out - part of it is through a tour.)

Could be worse I suppose - I could be staying in London! Thanks for your info! :hi:

[DFW]

27. That depends on where you are staying

My wife and I ran down there for a weekend last year. The fancy hotels are
ridiculous--over $400 a night--but if you keep away from the fancy but
tasteless restaurants, you can eat like a prince for very little. There is
an Afghan place in the center of town off at the corner of a little side street
where the food is fabulous, and dinner won't cost $10 a person, everything included.
There is also an ice cream place on the castle side of the Karlovy Most (the famous
Charles Bridge) called "cream dream" or something like that, that has THE best ice
cream you will ever have.

[smirkymonkey]

39. Thanks! The hotel isn't cheap, but part of my stay will be w/ a

group which is already paid for as are some of my meals. However, on my own, I can eat pretty cheaply - I always eat on the fly here in NYC anyway - a piece of fruit and a roll or something works for me. The thing is, I drink a lot (water/coffee/tea, etc. - not booze so much) and that runs into a lot of $$ throughout the day since I will be walking a lot.

I ususally get those big bottles of water and chug them throughout the day, but I easily go through about 5 or 6 of the tall ones a day. I will definitely find a "cream dream" and report back to you! Zmrzlina is what they call "ice cream" in Czech!

[StClone]

14. The only way this chicken coop flies

Bush's Economy works only if we make the U.S. Dollar weak to boost trade by making U.S. products cheap in foreign trade.

[Art_from_Ark]

21. The problem is, what is the US selling overseas?

I live in Japan, and I make an effort to look for US products, but about the only ones I see are the occasional SUV or Caddie (the car of choice for yakuza gangsters), wines and hard liquor, and a few overpriced foods in the local import shop.

[StClone]

26. Agri Products

Cheap corn formerly but the price on that is up -- Ethanol.

[NMDemDist2]

31. don't forget guns

we sell lots of guns and missiles and war related items

[StClone]

34. Yeah Guuuuns

USA Biggest Arms dealer! What does that say about our priorities!?

[feloneous cat]

37. Agri products?

Like viagri? :P

[entanglement]

17. Don't be surprised if the Euro touches $1.50 by December

[Earth_First]

19. Stock up...

It could be a long winter...

[DFW]

28. I am paid in dollars, but live in Euroland

Having a de facto 45% reduction in my take home pay has not been a pleasant
experience. When Bush was declared president, I put away a healthy amount of
Deutsche Marks (switched to Euros in 2002), when I got well over a Euro for my
dollar instead of the current 72 euro-cents that you get today. But my stash is
dwindling fast, and we still have the bills to pay. It's a good thing I don't
drive much, as gas at $7.50 a gallon eats up the old paycheck as well.

[Zhade]

42. I apologize for my country screwing you over.

Man, I'm going to be saying that one a LOT over the next few decades.

[JCMach1]

29. In related news, the UAE is expected to repeg the Dirham

or go to a basket of currencies...

The central bank here is tired of importing inflation when the overheated local economy is producing enough thank you...

[Up2Late]

32. kick n/t

:kick:

[radfringe]

33. question:

I live in the U.S. and work in the U.S. - can I request to be paid in Euros?

[DJKDJKDJK]

35. Americans are idiots for electing the same fools over and over

and expecting different results. Amazing. Simply amazing.

[Solar_Power]

38. Well, all that "Made in China" stuff has an impact

[Zhade]

43. And let's not forget how many of the Dem nominees support NAFTA and its ilk.

Thanks, Clinton et al, for fucking us over with your Republican "enemies".