Dollar drops to 2000 level in Chile

[bemildred]

The United States dollar dropped to a new record in the Chilean financial market closing the week in the range of 530 pesos, a benchmark unseen since June 2000.

The depreciation of the US dollar is linked to the overall declination of the US currency in world markets which ended this week at its lowest against the Euro since May last year, 1,2541.

Similarly the Brazilian Real which has an important influence in Chile as the region’s largest economy, operated strongly against the US dollar closing at 2,34 Reales, the highest in the last three weeks.

Internationally pessimistic forecasts about the short and medium term effects of the “Katrina” hurricane for the United States economy plus the impact in the Gulf of Mexico oil industry which represents 25% of US oil production have plunged the US dollar to new lows.

MercoPress

[enid602]

1. Thank you, *!

Of course, that fact that we haven't managed our currency during the * admin doesn't help, either. Our trade and spending deficits continue to soar. Remember the looming dollar dollar crisis? It was temporarily forgotten a few months ago as people dumped Euros in the wake of Europe's failure to adopt a constitution, but I fear it will loom again, made worse by the effects of Katrina. Thank you, *!

[NVMojo]

2. ...one of the reasons the neocons were pissed at Hussein had to do

with the move to sell oil to other countries at euro levels, thus minimizing the US Dollar. Wonder when we will be invading Chile or Venezuela. Or funding descent over there to create political chaos? We need leadership in the White House that knows how to build bridges with other world leaders ...we are so screwed at this point ...