Euro sinks against dollar

**Ironduke** · 08-22-2003, 02:08 AM

Euro sinks against dollar

The euro has hit new four-month lows against the dollar, as investors fret about the state of the European economy.
The euro's fall was made worse by a string of upbeat economic data coming from the US, which helped the dollar.

In late US trade the euro stood at $1.0919, down nearly 2% on the day.

The euro has lost 8% of its value against the dollar since June, partially reversing a sustained 33% increase since early last year.

Of the world's three major currencies, it has suffered most from the exodus from government bond markets by traders who previously preferred European bonds prior to the Iraq war.

The euro also fell against the yen on Thursday, slumping more than 2% to 128.64 yen, its weakest level since 9 April.

Brighter prospects for US

Four European countries - including Germany and Italy - are now in recession, whereas the US economy is showing tentative signs of a recovery.

The news coming out of Europe is increasingly gloomy, with France on Wednesday revealing its economy shrank by 0.3% between April and June.

In contrast, the latest data from the US indicates the economy may be improving.

Optimism about US prospects got a major boost from the Federal Reserve Bank of Philadelphia on Thursday.

It found that factory activity in the mid-Atlantic region reached a five-year high in August, indicating that the US manufacturing sector could be on its way to recovery.

The findings followed data released earlier in the day which showed the number of people lodging new claims for US jobless benefits fell to a six-month low of 386,000 last week.

And the Conference Board, a private research group, said its monthly index of leading indicators for July climbed 0.4% - the fourth month in a row it had risen.

"Overall, we're continuing to see the dollar ride this wave of optimism," said Alex Beuzelin, currency analyst at Ruesch International.

"The data that we've seen today provide further evidence to support that the fundamental growth gap between the U.S. and euro zone is widening. And that is fuelling the dollar's rally," he added.

http://news.bbc.co.uk/2/hi/business/3170789.stm

bigross86 · 08-22-2003, 05:54 AM

Blame it on the French. It's always their fault.

ChrisF202 · 08-22-2003, 10:07 AM

Or the Germans, they are also pretty anti-american

bigross86 · 08-23-2003, 13:54 PM

Blame the Germans sounds just a little too Jewish coming from me...

08-22-2003, 02:08 AM	#1 (permalink)
Ironduke Burgomaster Join Date: 08-02-03 Location: Minneapolis Posts: 6,800 Country:	Euro sinks against dollar Euro sinks against dollar The euro has hit new four-month lows against the dollar, as investors fret about the state of the European economy. The euro's fall was made worse by a string of upbeat economic data coming from the US, which helped the dollar. In late US trade the euro stood at $1.0919, down nearly 2% on the day. The euro has lost 8% of its value against the dollar since June, partially reversing a sustained 33% increase since early last year. Of the world's three major currencies, it has suffered most from the exodus from government bond markets by traders who previously preferred European bonds prior to the Iraq war. The euro also fell against the yen on Thursday, slumping more than 2% to 128.64 yen, its weakest level since 9 April. Brighter prospects for US Four European countries - including Germany and Italy - are now in recession, whereas the US economy is showing tentative signs of a recovery. The news coming out of Europe is increasingly gloomy, with France on Wednesday revealing its economy shrank by 0.3% between April and June. In contrast, the latest data from the US indicates the economy may be improving. Optimism about US prospects got a major boost from the Federal Reserve Bank of Philadelphia on Thursday. It found that factory activity in the mid-Atlantic region reached a five-year high in August, indicating that the US manufacturing sector could be on its way to recovery. The findings followed data released earlier in the day which showed the number of people lodging new claims for US jobless benefits fell to a six-month low of 386,000 last week. And the Conference Board, a private research group, said its monthly index of leading indicators for July climbed 0.4% - the fourth month in a row it had risen. "Overall, we're continuing to see the dollar ride this wave of optimism," said Alex Beuzelin, currency analyst at Ruesch International. "The data that we've seen today provide further evidence to support that the fundamental growth gap between the U.S. and euro zone is widening. And that is fuelling the dollar's rally," he added. http://news.bbc.co.uk/2/hi/business/3170789.stm

08-22-2003, 05:54 AM	#2 (permalink)
bigross86 401 Ikvot Habarzel *Military Professional* Join Date: 08-07-03 Location: Ra'anana, Israel Posts: 3,148	Blame it on the French. It's always their fault. __________________ You're a naughty girl, go to my room!

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08-22-2003, 10:07 AM	#3 (permalink)
ChrisF202 *Senior Contributor* Join Date: 08-12-03 Location: Long Island, New York, USA Posts: 2,575 Country:	Or the Germans, they are also pretty anti-american

08-23-2003, 13:54 PM	#4 (permalink)
bigross86 401 Ikvot Habarzel *Military Professional* Join Date: 08-07-03 Location: Ra'anana, Israel Posts: 3,148	Blame the Germans sounds just a little too Jewish coming from me...

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