Dollar Falls to Record Against Euro as EU Inflation Quickens

[swag]

Source: Bloomberg

April 16 (Bloomberg) -- The dollar fell to a record low against the euro after a report showed European inflation accelerated in March, reducing chances that the region's central bank will follow the Federal Reserve in cutting interest rates.

The U.S. currency had its biggest decline versus the euro in three weeks, dropping to the record of $1.5969. Crude oil rose to an all-time high of $114.53 a barrel, and U.S. housing starts dropped more than twice as much as forecast in March to a 17-year low.

``There's a big desire to sell the dollar, and the inflation report provided a trigger for new orders,'' said Neil Jones, head of European hedge-fund sales in London at Mizuho Capital Markets, a unit of Japan's third-largest lender by market value. ``The interest rate differential is going to remain in favor of Europe.'' The dollar may fall to $1.60 per euro today, he said.

Against the euro, the U.S. currency dropped 1.1 percent to $1.5959 against the euro at 8:40 a.m. in New York, from $1.5790 yesterday. The dollar decreased 0.7 percent to 101.14 yen, from 101.83. The euro rose 0.4 percent to 161.46 yen, from 160.78.



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=a74a_FpjyI3g&refer=home

[Ganja Ninja]

1. What a mess.

This is going to end badly. The great depression was a major cause of WWII. Thanks Conservatives. You guys sure know how to pick a leader.

[SpiralHawk]

2. Thanks a pantload, republicons

This mess is just another facet of the republicon recession

[saigon68]

15. Those fuckers have already converrted their wealth into Euros Gold etc

They have Billions squirreled away

[xchrom]

3. recommend

[nichomachus]

4. The GOP was hoping

to keep the economy propped up until a Democrat got in, so they could kick the props out then and blame it all on the Dems. Looks like they miscalculated a little.

[0rganism]

14. they'll just blame congress instead, very simple

Of course it helps that both Democratic candidates are currently members of congress.

A nod's as good as a wink to a blind man.
:shrug:

[endarkenment]

5. A dollar is going for 0.62 EU. Oil 114. Grain prices way up.

Not to worry we have more important issues here, like parsing every word of the democratic candidates for president to see if they can be evicted from the race by tape-loop assassination.

I'm starting to recall the advent of out of control inflation circa 1970. Only I suspect that the situation is much more threatening to world economic stability and much less controlable than it was back then.

[skoalyman]

6. I had a dream the other night

that it reached 67.76 I dont know why. But it looks like it'll be there in no time at all :scared:

[nebenaube]

9. uh...

that would be better than where it's at now.

[skoalyman]

16. I was talking about the dollar index

:P I know forgot to put it in the post.

[hunter]

7. If EU inflation "Quickens" doesn't this imply USA inflation is worse?

LIMBO ROCK
Chubby Checker
(W.E. Strange & Jon Sheldon (Kal Mann))

Every limbo boy and girl
All around the limbo world
Gonna do the limbo rock
All around the limbo clock
Jack be limbo, Jack be quick
Jack go unda limbo stick
All around the limbo clock
Hey, let's do the limbo rock

Limbo lower now
Limbo lower now
How low can you go

First you spread your limbo feet
Then you move to limbo beat
Limbo ankolimboneee,
Bend back like a limbo tree
Jack be limbo, Jack be quick
Jack go unda limbo stick
All around the limbo clock
Hey, let's do the limbo rock

la la la ......................

Get yourself a limbo girl
Give that chic a limbo whirl
There's a limbo moon above
You will fall in limbo love
Jack be limbo, Jack be quick
Jack go unda limbo stick
All around the limbo clock
Hey, let's do the limbo rock

Don't move that limbo bar
You'll be a limbo star
How low can you go?

[Javaman]

8. How far we have fallen in 7 1/2 years. nt

[ShockediSay]

13. Take a look at our national debt nt

[eppur_se_muova]

10. Charts: US$ vs Euro, Canadian$

http://research.stlouisfed.org/fred2/data/DEXUSEU.txt

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=3008533&mesg_id=3008533

[lonestarnot]

11. Are the eggs hardboiled yet?

[skoalyman]

12. kick

I dont know but the toast is burning.

[More_liberal_than_mo]

17. Dollar has been in toilet

since end of 2003. The dollar reached its all time high (under Bill Clinton) on Oct 26, 2000 when you could get 1 Euro for 82 cents. Soon the dollar will have lost half its value against the euro. In January 2003 (prior to Bush's Iraq War)the dollar and euro were roughly equal in value, in fact one of the reasons for the Iraq War was to prevent Saddam from basing his oil sales in euros not dollars. By the end of 2003 when the rest of the world saw Bush's War to be based on oil not WMD the Euro had climbed to $1.26 and it's been downhill ever since for the greenback. It's only a matter of a few more months before the rest of the world abandons the dollar pricing of oil and the Euro becomes the new standard. When that happens you'll be wishing for the return of $115 a barrel for crude. I predict we'll be paying $200 a barrel by Christmas (after converting the Euro price to $)