Tuesday, November 23, 2004

$1.31 and rising

The value of a Euro against a good old American greenback,that is:

"TOKYO (Reuters) - The dollar stayed just above a record low against the euro on Wednesday, pressured by news that Russia may consider boosting the share of euros in its $100 billion-plus foreign currency reserves.

A recent rebound in oil prices also prompted concern about the U.S. growth outlook, burdening the dollar already reeling from a market view that Washington may want the dollar to fall to help cap the huge U.S. current account deficit.

The Russia development triggered fresh dollar selling on Wednesday, sending the currency to an all-time low against the euro, a nine-year trough versus the Swiss franc and a four-month low versus the British pound.

The first deputy chairman of the Russian central bank, Alexei Ulyukayev, admitted in a press conference on Wednesday that the bank was reviewing its forex reserves 'with the highest priority.'

Expectations that the central bank could further increase the share of euros in its reserves, already at 25-30 percent compared with 10 percent two years ago, helped the euro against the dollar.

It also prompted renewed speculation that other nations could do the same in light of the dollar's decline in the past few years and concerns about the U.S. current account deficit."

It wouldn't serve their purposes to do so just now, but let's hope the Chinese and Japanese don't feel any similar urges to start dumping dollars. They're sitting on roughly five times what Russia has in USD.


Anonymous Anonymous said...

good work

11:25 PM  

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