Saturday, April 02, 2005

Okay class, let’s have a quick review

The US Dollar is currently at 77.5 cents in comparison to the Euro

Dollar Drops Versus Euro, Yen After U.S. Jobless Claims Rise


March 31 (Bloomberg) -- The dollar fell against the euro and yen after government reports showed U.S. jobless claims rose and inflation held steady, a sign the Federal Reserve may not need to raise interest rates as much as some traders expected.
Fewer U.S. rate increases may lower demand for the dollar among investors seeking to benefit from a widening in the gap with Europe. The European Central Bank has kept its main rate at 2 percent since 2003 as the Fed lifted its target seven times, to 2.75 percent. Today's report showed U.S. claims for unemployment benefits rose to the highest since January.

``This jobless claims number took people by surprise,'' a day before the U.S. March employment report, said Chris Melendez, president of currency hedge fund Tempest Asset Management in Newport Beach, California. ``That's making the dollar a little more unattractive.''

Dollar headed for collapse: Mahathir


The US dollar is facing an imminent collapse and the global economy will suffer a "catastrophe" when it is rejected as the currency for trade, former Malaysian prime minister Mahathir Mohamad said in remarks published yesterday. Mahathir, who famously ignored International Monetary Fund (IMF) advice and instead chose to peg his country's ringgit to the US dollar during the Asian financial crisis, said a standard gold currency was now the best alternative for world trade. The dollar was retaining some value because of fears of a global economic catastrophe if it was rejected

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