The Dollar Is Getting Killed

September 28, 2007 at 10:53 am  ·  Category: Foreign Exchange, Market Commentary

“The accelerated decline in the dollar has been well deserved.”

- Axel Merk, Portfolio Manager, Merk Hard Currency Fund 

Stocks are pretty much dead today.

But there is some interesting action going on in currency markets. 

The euro has rallied another penny against the dollar up to $1.426 per Euro (2 Day Chart).

That adds up to a 4 cent (3%) rally since the Fed cut rates last Tuesday (9/18) at 2:15pm EST (1 Month Chart).

And about a 26 cent rally (22%) rally over the last 2 years (4 Year Chart).

Gold is also up more than $10 today to around $750 an ounce.

This is a problem as it makes investing in the US very unattractive for foreigners.  When they convert their dollar investments back into their home currencies they get less and less of their home currencies which they use for their purchases.

More on this topic (What's this?)
Fed Out of Ammo; Dollar is Toast (Blogging the Commodity Bull Market, 12/17/08)
Fed Throws a Hail Mary Pass...and Everybody Loses (Financial Armageddon, 9/18/07)
Speculative Convergence? (Financial Armageddon, 10/11/07)
Read more on Currency, Euro (EUR), Federal Reserve at Wikinvest
Posted by Greg Feirman  ·  Trackback URL  ·  Link
 

Leave a Comment

Name required
E-mail required, won't be published
Web site