Re: Dollar at record low against euro

Korre khar, what is 2+2 =???

agar azat porseedand begoo javab meeshe gheymat-e naneye jendeye borzou
gozou be toman.

dar morede masa el e mali va poole beyneonmellali so al shod begoo Deev
meege
3 if you are buying
6 if you are selling.



"Alborz" <inmaster@xxxxxx> wrote in message
news:4266b$46e85a2b$506d67f0$5165@xxxxxxxxxxxxxxxxx
GO , GO america , Go to Bankrupt

Dollar at record low against euro
The US dollar has fallen to a record low against the euro as investors bet
that the Federal Reserve will cut interest rates to help the economy.
At its nadir in European trading, it took $1.3914 to buy a euro, passing
the last record of $1.3852 set on 24 July.

Many analysts are predicting that the Fed will cut interest rates next
week as it looks to reassure markets and consumers amid a global credit
crunch.

The dollar has weakened against the euro for six sessions in a row.

"The market's main focus remains on US economic fundamentals," said
Tomohiro Iwata of Goldman Sachs.

He added that investors would be debating whether the Fed would cut rates
by a quarter or a half of a percentage point, and what comments they might
make following any move.

"Dollar weakness is still the story of the day," said David Jones of CMC
Markets in London.

"Markets seem to be expecting a rate cut - I think half a percentage
point - and that has been weighing on the dollar," he explained.

Rate spread

At the heart of the dollar's decline have been problems in the US housing
market, caused by the Fed increasing interest rates in order to slow
accelerating inflation.

As a result of the higher borrowing costs, an increasing number of
borrowers have defaulted on loans, especially in the sub-prime mortgage
market, which specialises in lending to people with poor or non-existent
credit histories.


This, in turn, has spread to global credit markets, as many of the
sub-prime mortgages were repackaged and sold on to European and UK banks
as investment assets.

Analysts are now speculating that the Fed will cut its main interest rate
to ease the pressure on consumers, and help reassure the global markets
that it is willing to intervene to ensure financial stability.

The Fed's main interest rate is currently at 5.25% and any cut would be
the first in four years.

At the same time, there is speculation that European rates may rise as the
region's economy grows by more than 2% this year.

On Tuesday, Jean-Claude Trichet, the president of the European Central
Bank, said once again that the European economy was healthy.

However, he warned that market volatility could continue.

"We have seen a distinct possibility that the ongoing deterioration of
credit worthiness of borrowers in the US sub-prime mortgage market could
be a trigger for a more broad-based market correction," he said.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/6990570.stm

Published: 2007/09/12 20:43:44 GMT

© BBC MMVII




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