Wednesday, Oct 17, 2007
Bye bye greenback
FT.com: IMF says dollar ‘overvalued’
Currency traders were given a green light to continue selling the US dollar on Wednesday, as the International Monetary Fund said the greenback “remains overvalued” and rejected claims the euro had risen too far.
Posted by dohousescrashinthewoods @ 06:52 PM (602 views) Add Comment
5 Comments
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1. whiteknight said...
if they say so then it must be so.
2. alan said...
This is the key to the rising oil price.
The dollar has devalued about 20% in the last 4 years. Hence the arabs hiked the oil price to maintain the purchasing power of a barrel of oil!
3. planning4acrash said...
Alan, oil has risen by almost 50% in the past year alone, so a falling Greenback can only account for a small portion of this bear market. Most of the current rise is on fear of supply because non opec production is down, opec production isn't meeting demand, inventories are very low, demand is sky high and some jitters from geopolitical tension are adding to the fireworks.
4. planning4acrash said...
Oops, its a bull market!!
5. Yoss said...
I really hope this doesn't get as ugly as its starting to look. Even IMF looking at USD and saying, "You think its worth what now". can USD can take much more pressure before pegged currencies de-couple to fight off inflation, or oil producers start selling contracts in diffrent currencies. Both will bode baddly for USD currency.
I guess it explains why nearly all commodities priced in USD look like thier goinng through the roof. I would hate to be holding alot of carried currency right now, as when/if it does swing into reverse those 0.5% carried rates are gunno look like peanuts compared to the % swing in exchange rates. Oil is pushing $90 a barrel and winter is still on it's way.
I guessing the FED knows a shed load more than it is letting on about, with what is comming up in the near future, hence the 0.5% rate cut, Perhaps they've cracked nuclear fusion?