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

Foreign investors fear weak dollar { September 22 2003 } Original Source Link: (May no longer be active)    http://news.bbc.co.uk/2/hi/business/3130694.stm http://news.bbc.co.uk/2/hi/business/3130694.stm Last Updated: Monday, 22 September, 2003, 21:04 GMT 22:04 UK Weak dollar sparks share rout A drop in the value of the dollar caused stock markets to plunge around the world on Monday. Leading stock market indexes in the US, Japan, France and Germany all fell heavily during the day's trading. The falls were triggered by a statement from the G7 group of rich nations, meeting in Dubai at the weekend, who called for market forces to set exchange rates. The statement hit US stock markets, as investors feared that a laissez-faire attitude towards the weak dollar would deter foreign investment. "If the dollar continues to fall, there is increasing risk that foreign investors will pull money out of US stocks and bonds," said Mike Kayes, chief investment officer at Eastover Capital. In New York, the Dow Jones closed 109 points lower at 9,535, while the Nasdaq technology index lost 1.6% of its value. The statement also hit countries which export to the US, who fear that the weak dollar will make their products less competitive in the key US market. 'The wobblies' Signs of a US economic recovery have boosted the share price of many of these exporting firms recently. But the weak dollar will undermine the hopes of a recovery. Japan's stock market plunged by more than 4%, after a strong jump in the yen sparked fears that crucial exporters such as Sony and other technology firms might start to suffer. The yen, which has been steadily gaining over the past two years, rose by 2% to almost 111 yen in the dollar, after reports at the weekend indicated that the central bank could do nothing to stem further gains. In Europe, carmakers such as Porshce, Renault and BMW - all of whom have active export markets to the US - led the way down. France's Cac index fell 2.7% while Germany's Dax plummeted 3.4%. "Currency wobblies have hit global markets hard, as a falling dollar and a rising yen and euro tend to impact crucial export activity," said Larry Wachtel at Prudential Securities.

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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