Dollar Declines on IMF Statement
The U.S. dollar declined today against other major currencies as the International Monetary Fund stated that there are still serious risks to the global financial market connected with the U.S. real estate crisis.
Most significantly dollar fell against euro, pound, yen and Australian dollar. Apart from the IMF statement, markets await the PPI report in U.S. today to show the moderate growth of prices, which will allow FOMC to further reduce the interest rates.
IMF still sees serious risks to global financial stability, while the dollar remains quite overvalued against some Asian currencies. Investing banks agree with this point of view as they think that the U.S. housing slump is still menacing the economic growth.
USD/JPY declined today from 104.33 to 103.77 as of 8:21 GMT. EUR/USD rose from 1.5519 to 1.5601- more than 0.5%, while GBP/USD went up from 1.9488 to 1.9566. AUD/USD reached a new 24-year high today on Forex — it went up from 0.9536 to 0.9599.
May 20th, 2008 at 1:34 pm
Surely the moment when I can buy 100 iPods from NY for £3 each is not far away?
May 20th, 2008 at 4:23 pm
More and more countries are abounding the USD. The Fed need to increase the interest rate higher if they want to see a strong dollar
May 20th, 2008 at 5:03 pm
Jon, Dollar is feeling bad, but not that bad yet :-).