Dollar hits new low against euro
 

US Treasury Secretary John Snow has reiterated the US commitment to a strong dollar, as the greenback hit another record low against the euro.
He told the Royal Institute of International Affairs in London that US policy "is for a strong dollar".

But his comments made little impact on the markets, and by 1036 GMT the euro was worth a record $1.303.

European policymakers have called the dollar's slide "brutal", blamingthe euro's strength for dampening growth.


'Shared responsibility'

"The question was, why do I support a strong dollar policy? The answer is because it is our policy," Mr Snow said.

"Our dollar policy remains unchanged because a strong dollar is in both the national and international interest."

He pledged to curb the US massive budget deficit - but said the size of the current account deficit at the moment was evidence of "economic strength".

But while admitting that the deficits were hampering growth elsewhere in the world, he said that a "shared responsibility" among nations is needed to solve the problem.

He praised China, saying it had moved towards market discipline for its currency.

He said China's decision to raise two key interest rates last month for the first time in nine years "represents significant steps consistent with China's move to a flexible and market-based exchange rate".

Analysts point out despite the positive comments on the dollar, President George W Bush's administration had done little to stop the currency's slide.

Some analysts maintain the US is secretly happy with a lower dollar which helps makes its exports cheaper in Europe, thus boosting its economy.

They also say the dollar is unlikely to strengthen significantly, until the US economy improves.

http://news.bbc.co.uk/1/hi/business/4019023.stm

please stfu, I am feeling a bit down already

Well this is what we get for electing Bush...:321GFY

I make up for this by buying a lot of stuff online.......

I think I will be buying lots of dollars !! ! :Graucho

yeah , it sucks in a way , but just open a bankaccount in dollars

keep them for a while and when 1 dollar is 1.3 euros again like it should be , you will be very happy :Graucho

and what if you have to wait 7 years for it?

At least 4 more years :glugglug

yeah and what if it will be even lower? ;)

even alot lower? :)

I doubt that will happen , the dollar will be worth more than they euro again , it is only a matter of time :))

100,000.00 EUR = 130,248.60 USD


now, keep that 130 000 dollars until 1 dollar = 1.3 euro and you would have 170 000 euros :)

:BangBang:

what makes you think so ?

When they are going to end this fucking war?

I think when the war will be over (US will leave the Iraq alone) dollar will be raising. But its hard to believe that 1 dollar will be 1.3 euro

it will take long before it ends. it's like a never ending cycle.

How about that Euro vs the GBP?

I hope i live the day...

He says thing like this with the dollar in the toilet and the defecit growing to people who know what it's about.

They must have thought, "Another fool at the wheel best sell those dollars I was holding"

All those telling us the dollar will rise, can they give us some better reasons than Mr. Snow. Because he's not convincing anyone.

please don't make me cry..makes me think of the USD vs the GBP which is making things very tight here.