NewsMine — economy — united-states — 2003 — 2003-sept-oct — Viewing Item

Dollar tumbles low against euro { October 8 2003 } Original Source Link: (May no longer be active)    http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1059480428346 http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1059480428346 Dollar tumbles to fresh low against the euro By Ivar Simensen in London Published: October 8 2003 11:19 | Last Updated: October 8 2003 11:19 Growing concerns about the massive current account deficit in the US sent the dollar tumbling to a fresh three-month low against the euro on Wednesday morning in London while it came off Tuesday's three-year low against the yen after Japan warned of further intervention in the currency market. The dollar tumbled to $1.1839 against the euro in London early in the session, its weakest level since June's all-time lows of $1.193. The belief is that the dollar would have to fall sharply in order to adjust the US current account deficit, which is expected to reach $570bn this year. By mid morning the dollar had made up some ground to trade at $1.1796 against the greenback. The downbeat dollar sentiment dominated the market with analysts saying signs of growth in the US economy were also a negative for the US dollar, as it would widen the deficit. Comments from several European finance ministers on Tuesday, expressing little concern about the current strength of the euro, did little to stem developments. The dollar dropped below Y110 against the yen for the first time in three years and hit a low of Y109.41. However, the yen eased slightly after Sadakazu Tanigaki, Japan's finance minister, said recent dollar-yen moves had been too rapid and that the government, through the Bank of Japan, would "decisively intervene" to stem fast and speculative moves in the currency market. The comments took the yen off its strongest levels and stood at Y109.83 against the dollar in mid-morning trade in London. The Australian dollar rallied against its US counterpart after the Reserve Bank of Australia left interest rates unchanged at 4.75 per cent, one of the highest interest rates levels in the developed industrial economies and well above the 1 per cent interest rate in the US. The interest rate has been held steady for more than a year, helping push the Aussie dollar up 23 per cent since the start of January. The Aussie dollar traded at $0.6905 in morning trade in London after hitting a high of $0.6923 in overnight trade, its highest level in nearly six years. The Canadian dollar also benefited strongly from the US dollar sell-off. The Canadian dollar rose to C$1.3263, a seven-year high, before easing back to C$1.3318 on Wednesday morning. Sterling eased off fresh three-month highs against the dollar and fell versus the euro as traders were unwilling to committ themselves ahead of the UK interest rate decision on Thursday. Although the Bank of England is widely expected to leave interest rates unchanged at 3.5 per cent, the next move is expected to be upwards. Sterling stood at $1.6631 against the dollar, off Tuesday's peak at $1.1677, and fell to £0.7114 against the euro.

2 years in a row more in poverty Asian debt withdrawal threat to us deficit { September 7 2003 } Asian unpegging crucify us { October 3 2003 } Bush bid weaken dollar against asia { September 24 2003 } Bush cuts schools highways { September 10 2003 } Bush priorities under scrutiny Bush takes credit economic upturn { September 1 2003 } China brings us export resictions into trade debate Deficit not manageable { September 18 2003 } Deflation still worries federal reserve { September 17 2003 } Deflation will continue for years { September 10 2003 } Disappointed earnings bonds rally Dollar gains on euro { September 2 2003 } Dollar over valued { September 18 2003 } Dollar plunges 3 year low Dollar tumbles low against euro { October 8 2003 } Economy expands fastest since 1984 no jobs { October 31 2003 } Fed holds rates warns on deflation Firms dont buy rebound Firms still slashing jobs Foreign investors fear weak dollar { September 22 2003 } Gold hits 7 year high { September 25 2003 } Gold records as tumbling dollar { September 10 2003 } Government claims unemployment stabilizing { October 3 2003 } Grocery workers 3rd day strike san diego { October 14 2003 } Job loss like great depression Jobless claims lowest eight months { October 9 2003 } La transit strike may strand 500 thousand { October 14 2003 } Mass august layoffs { September 26 2003 } Monthly costs iraq approach vietnam Poor gained 1 3m in 2002 { September 3 2003 } States risk big losses bond funding pensions { October 12 2003 } Stocks at 14 month high { September 2 2003 } Stocks fall economy worries { September 30 2003 } Stocks lower after production data Stocks rebound hopes intact { October 1 2003 } Stocks rise on upbeat analyst reports { September 8 2003 } Stocks slip bonds rise Trade gap bring down dollar warns imf { September 19 2003 } Trade gap could bring down dollar { September 19 2003 } Uninsured increases 2 4 million last year { September 30 2003 } Us bonds face gloomier future as selling continues { September 7 2003 } Us closes last levis manufacturer { September 26 2003 } Us losing millions manufacturing jobs { September 4 2003 } Weak dollar raises stocks Files Listed: 45

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