Dollar Slides, Hurt by Weak U.S. Stocks

[Spazito]

NEW YORK (Reuters) - The dollar weakened against major rivals on Friday, undermined by steep falls in U.S. stocks amid a growing belief markets have already priced in much of the positive economic and corporate news, analysts said.

<snip>

Traders said the euro's gains against the dollar were driven to a certain degree by investors' desire to build positions in high-yielding so-called "commodity currencies."

UK retail sales and growth data buoyed expectations that Britain was likely to lead major economies in raising interest rates, and sterling held near a five-year high against the dollar set earlier in the session.


"I think to some extent the euro is more or less being dragged around by cable (sterling), the Aussie and Canada. Those currencies seem to be leading," said Ralph DelZenero, managing director of foreign exchange at Bank One in Chicago.

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http://story.news.yahoo.com/news?tmpl=story&cid=568&e=2&u=/nm/markets_forex_dc

( This paragraph is interesting for it's spin:

Traders said the euro's gains against the dollar were driven to a certain degree by investors' desire to build positions in high-yielding so-called "commodity currencies."

what it really means is that investors are fleeing to other countries currency because they are concerned about the US economic stability.)

[UpInArms]

1. rising deficits that seem

to have no end do not bode well for the dollar or the economy

[FlemingsGhost]

2. This is nuthin...

Wait until foreign countries unite and establish the EU as THE trading currency (as a measure to combat the BushCo. imperial hegemony) Industrialized nations don't need military might to defeat the U.S., they need to divest, steer clear and watch us spend ourselves into oblivion.

"Brother can you spare a dime? ..."

[Spazito]

3. Exactly! This is the big "war" that Bush, and sadly, the US, will be...

on the losing end. Every country knows they cannot defeat Bush militarily but, economically, the US is incredibly vulnerable. Asian countries own much of the US's "paper" re debt and that gives them incredible power. Saudi Arabia is a major player in foreign investment in the US, that is one of the reasons why the Bush cabal tiptoes around them, besides the Bush/Saudi connection. Imho, this does not look good for the US.

[aquart]

4. Ken Lay in jail yet?

There has been zero meaningful reform and the scandal has now spread to mutual funds.

The SEC can't be bothered and Wall Street is upping its donations to George. Anyone who buys a stock from these thieves would do better to try his luck on the mega lottery.

[goforit]

5. Martha Stewart(the Woman) gets slammed...Yet theMen get a pat on

the back!!!!

I think I will be buying all my goods at K-MART!!!!!

:yourock:

[DBoon]

7. Isn't K-Mart union?

If so, then a good choice then.

[DBoon]

6. "Concerned about US economic stability"

No sh*t Sherlock!!


God may be powerful enough to appoint a Bush, but he ain't powerful enough to change currency markets.

[teryang]

8. Central banking anti gravity machine failing

...soon. Have any of you heard or read the expression "wylie coyote moment" in reference to our current economy?

They are trying to hold off the precipitous economic drop until the end of the third quarter in 2004. The collapse will start in Oct. 2004 but the figures will be skewed. The truth will come out after the Nov. election.

[UpInArms]

9. the "truth" will be felt long

before it is talked about in any media (excepting DU)

[mumon]

10. AGAIN FOLKS, THEY ARE DOING THIS INTENTIONALLY.

This will impoverish YOU, not THEM. Unless of course you have foreign currency securities, ADRS, foreign bond funds, and stuff like that.

You can get it (for your IRA); you should get it.