Fears of dollar collapse as Saudis take fright

#1
#3
Strait_Jacket wrote:

I think it means that in a few months I might just be able to buy a house!
Result :) It's an ill wind that blows nobody any good.

~~~

On similar vein to first post

http://www.nytimes.com/2007/09/20/b...l=1&adxnnlx=1190354889-cT+0+cjmewlGY1y9rajuYw

FRANKFURT, Sept. 20 — Investors around the world dumped the dollar today, pushing it to an all-time low of $1.40 against the euro and to parity with the Canadian dollar for the first time in three decades as currency traders digested the full implications of the Federal Reserve’s new course for interest rates.
Gold prices also soared, reaching a 27-year high at $746.50 an ounce in New York trading before closing at $739.90, up $10.40.
How much was it brown sold half the UK gold reserves for a few years back--$300 or something?
 
#4
Does that mean that we will be using the Euro instead of the Dollar on Ops in future?????? I hope so as i am fed up loosing money on the exchange rate!
 
#5
conco wrote:

Does that mean that we will be using the Euro instead of the Dollar on Ops in future?????? I hope so as i am fed up loosing money on the exchange rate!
Not sure. Might do. I think it's possibly a step in that direction. Not sure if that's all bad for the US or all good for the Euro-bods either.

Maybe someone who understands this stuff properly can explain.
 
#6
Just think back 6 years to see how it has all changed.

The Euro was worth $0.85 when it was introduced as physical currency and today it is $1.41.

I wonder if the spams realise that loosing 50% of the value of their currency in 7 years is a bad thing?
 
#7
Mr_Jones said:
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/19/bcnsaudi119.xml&CMP=ILC-mostviewedbox

Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East.
Dunno what this means but it sounds important.
It means cheap holidays in Florida. Unless the Pound goes the same way.
 
#8
A lower value of your currency is not necessarily a bad thing. US manufacturers will be chuffed to bits as it means their exports will significantly increase. On the flip side UK and European exports to the US will become far less attractive and could hit the Brit manufacturer.
 
#9
Gonzo said:
A lower value of your currency is not necessarily a bad thing. US manufacturers will be chuffed to bits as it means their exports will significantly increase. On the flip side UK and European exports to the US will become far less attractive and could hit the Brit manufacturer.
Yes I heard on the BBC this morning the Airbus are bricking it because it makes their jets so expensive when compared to Boeing.
 
#10
:? Swings and roundabouts, but as you say easier to sell hardware to Arab countries, think some gulf states have 13% inflation right now. :?
 
#11
From a Canadian perspective, we see not only the decline of the US$, but also the growth of the CA$. In 2002, our the CA$ was worth about US $0.70 and we had to pay about CA$1.55 for a Euro. In 2003, the GBP was worth about CA$2.50 .

Now, we are at parity with the US$. However, were it just a case of the US$ weakening, we would still have to pay the same amounts for Euros and GBP as above or at least, very close to them. However, the GBP now costs about CA$2.02 and the Euro costs CA$1.40 or so. Hence, the US$ is falling, but ours is also growing.

My personal thought is the Euro will grow in importance and quite possibly replace the Greenback as the "currency of choice" for international trade. That said, whenever I leave Canada, I always carry small amounts of three foreign currencies: US$, Euro and of course GBP. With a bit of each of those in your pocket, you can buy whatever you need, pretty much anywhere in the world.
 

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