NewsMine — economy — united-states — 2004 — 2004-oct-nov — Viewing Item

Dollar falls to nine year lows { November 4 2004 } Original Source Link: (May no longer be active)    http://news.ft.com/cms/s/a67665a0-2e8d-11d9-97e3-00000e2511c8.html http://news.ft.com/cms/s/a67665a0-2e8d-11d9-97e3-00000e2511c8.html Dollar falls to nine-year lows By Steve Johnson and Kevin Morrison in London and Jennifer Hughes in New York Published: November 4 2004 18:19 | Last updated: November 4 2004 18:19 The dollar fell to fresh nine-year lows in trade-weighted terms on Thursday and gold prices reached a 16-year peak amid concerns over tensions in the Middle East and a renewed belief in the dollar's longer-term decline. Traders said reports of Yassir Arafat's continuing ill-health were weighing on the dollar. “This spells trouble for the dollar since it could mean protracted US involvement in the region, not just Iraq,” said Kamal Sharma, currencies strategist at Dresdnert Kleinwort Wasserstein. Middle Eastern investors, including central banks, have been active in the market selling dollars over the past two days, according to traders. There has been speculation for some time that investors in the region would seek to diversify their largely dollar-based wealth as the greenback weakened. “People are not just looking at simply the next few months for the dollar, they're looking more broadly at a decline over the next few years,” said Tony Norfield, global head of currency strategy at ABN Amro. The greenback's weakness was also attributed to the re-election of President George W. Bush. Since the start of Mr Bush's first term the dollar has fallen 20.8 per cent in trade-weighted terms and observers do not expect a change in dollar policy in his second term. “Dollar sentiment is dire at the moment,” said Derek Halpenny, senior currency economist at Bank of Tokyo-Mitsubishi. “Bush has been given an extremely strong mandate and that raises doubts about his commitment to reduce the budget deficit by half over a five-year period.” Thursday's selling saw the dollar fall to $1.2886, within 0.4 cents of its February all-time low against the euro. It declined to an eight-year low of SFr1.1854 against the Swiss franc, a 12-year low of C$1.2034 against the Canadian dollar and to within a whisker of a six-month low against the yen. Gold hit a 16-year high of $432.95 a troy ounce, before settling at $429.65/$430.40 in late London trade. The dollar's decline against the euro was hastened by Jean-Claude Trichet, the president of the European Central Bank, who emphasised the risk of inflation at a press conference but declined to say that the euro's strength of the euro was hurting the eurozone.

Bush says jobless can go back to school { October 14 2004 } China rate boost may help US Consumer confidence fell seven month low Crude oil falls on speculation inventory gain Dollar and markets dive on greenspan warning { November 20 2004 } Dollar fall pushes gold above 450 { November 26 2004 } Dollar falls to nine year lows { November 4 2004 } Dollar nears record lows bond sink { November 19 2004 } Dollar struggles after stumble Dow and gold up while oil down { November 4 2004 } Economic armageddon predicted { November 23 2004 } Election day gains lost on kerry victory concerns Fears over recovery as walmart sales stall { November 28 2004 } Fed raises rate to 2 percent in november Food stamps in colorado at five year high { August 25 2004 } Gm to close baltimore plant 2005 { November 16 2004 } Gold and stocks go down together Gold heads to 16 year high Gold highest in six months as dollar slides Greenspan playing the fool { October 29 2004 } Greenspan says foreigners may curb financing deficit Imf predicts strong growth Income gap widens and uncertainty spreads { September 20 2004 } Income gap widens more families struggles { September 20 2004 } Interest rate rise by china confuses west { October 29 2004 } Job growth slows raising new concerns { October 9 2004 } Jobs created are minumum wage jobs fastfood no benefits { October 9 2004 } Ranks of areas invisible poor are increasing { October 3 2004 } Retailers usher in holiday season Stocks biggest drop four weeks after oil hike Stocks dip below 10000 mid october { October 13 2004 } Stocks dollar rise as oil drops day before election Stocks fall gold up on high oil prices { October 9 2004 } Stocks fall on producer prices report Stocks fly after bush win Stocks rally 6 days before election { May 12 2003 } Stocks rally big 7 days before election Stocks sent sliding on rash of bad news { October 23 2004 } Trade deficit second biggest ever Trade gap narrows on falling dollar Treasuries slip flustered by inflation scare US isnt concerned about dollar record falls US job growth weaker than expected US jobless rose 20 thousand to 350 thousand Files Listed: 44

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