“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.