Dollar drops on Fed cut

http://www.bloomberg...INeKlU3M&refer=us

The dollar declined the most against the euro since the 15-nation currencyÂs 1999 debut and sank to a 13-year low versus the yen after the Federal Reserve cut its target lending rate to as low as zero.

The drop was sharp, but not unexpected. Why invest in the US if there is no money to be made? Treasury bills and interest rates are both nearly zero. And even worse, the next step for the Fed might be fighting deflation by printing lots of money, which will drive the exchange rate down even more. From the perspective a foreign investor, this is a good time to be moving to Euro investments. And it will probably be that way for some time.

Jay

Post #301,179 by jay 12/17/08 12:00:21 PM Reply	Dollar drops on Fed cut http://www.bloomberg...INeKlU3M&refer=us The dollar declined the most against the euro since the 15-nation currencyÂs 1999 debut and sank to a 13-year low versus the yen after the Federal Reserve cut its target lending rate to as low as zero. The drop was sharp, but not unexpected. Why invest in the US if there is no money to be made? Treasury bills and interest rates are both nearly zero. And even worse, the next step for the Fed might be fighting deflation by printing lots of money, which will drive the exchange rate down even more. From the perspective a foreign investor, this is a good time to be moving to Euro investments. And it will probably be that way for some time. Jay
Post #301,208 by a6l6e6x 12/17/08 8:32:07 PM Reply	Hey, it's good for exports! Not to mention the jobs that go with them. Alex
Post #301,209 by Andrew Grygus 12/17/08 8:50:20 PM Reply	But - are the potential customers . . . . . in good enough shape to be buying?

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