Friday, November 10, 2006

Europe and China Wonder About The Strength Of The Dollar

Boursorama.com, a popular website in Europe (equivalent to our Yahoo Finance, I guess), declares that the dollar has been penalized by general uncertainty concerning the health of the American economy. Foreign exchange specialists are wondering again about the possibility of a Fed rate dip as soon as the first trimester of 2007.... The dollar is also under pressure after the declarations of the Chinese central bank governor, Zhou Xiaochuan, who said yesterday that China was thinking about diversifying its reserves away from the dollar in the coming years. [Translation]

Euro vs Dollar
[Thanks to synd.org for this Matt Carmody cartoon.]

The original text:

"Le billet vert a ete penalise par les incertitudes entourant la sante de l'economie americaine. Les cambistes s'interrogent a nouveau sur l'eventualite d'une baisse des taux de la Reserve Federale americaine des le premier trimestre 2007.... Le dollar est egalement sous pression apres les declarations du gouverneur de la banque centrale chinoise, Zhou Xiaochuan, qui a explique hier que la Chine reflechissait a une politique de diversification de ses reserves de changes dans les prochaines annees au detriment du billet vert."

Read more here.

This pretty much parallels my last post.

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