U.S. dollar hits 2009 low

[briann]

http://www.foxbusiness.com/story/markets/market-overview/global-markets-dollar-hits--low-aids-commodities-stocks

Dollar Hits '09 Low, Aids Commodities, Stocks

 

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Reuters

 

LONDON-- The dollar fell to a 2009 low on Friday as fears intensified that the United States could lose its triple-A rating, supporting dollar-priced commodities and boosting resource related shares.

The dollar's latest decline started when ratings agency Standard & Poor's cut its ratings outlook on Britain to negative from stable, stoking fears other AAA-rated countries which are running huge debt levels could share a similar fate.

Moody's Investor Service said on Thursday it was comfortable with its triple-A sovereign rating on the United States but that it was not guaranteed forever.

"The main issues are related to yesterday's movement on fears that the U.S. might lose its triple-A rating," said Roberto Mialich, FX strategist at Unicredit in Milan.

"This exacerbated the dollar's losses over the last few days ... (and) for the time being it's hard to imagine a sharp reversal of the dollar's trend."

The dollar index, which measures the currency's strength against major trading partners, fell 0.4% to its lowest since late December.

The index is on track for its biggest weekly drop in two months, when the Federal Reserve launched its large-scale purchases of U.S. Treasuries in late March.

Minutes of the Fed's April meeting, published this week, showed it considered buying more securities to spur recovery, a move which would inject more dollars into the market.

The FTSEurofirst 300 index reversed early losses to stand up 0.4% with mining shares garnering support from rises in metal prices. Copper and steel material zinc rose around 3-4%, helped by a weaker dollar.

U.S. crude oil rose 0.8% to $61.54 a barrel, close to the previous day's six-month high above $62.

MSCI world equity index was up 0.6%, off its six-month peak set this week. Emerging stocks rose 0.4%. U.S. stock futures were pointing to a firmer open on Wall Street later.

June Bund futures fell 79 ticks.

[Dan]

Great Post!
 Last summer I was in Europe and the parity Euro/Dollar was near 1.65, it looks like we're slowly creeping up there again. Way-To-Go For The Stimulus Bill!

[briann]

Great Post!
 Last summer I was in Europe and the parity Euro/Dollar was near 1.65, it looks like we're slowly creeping up there again. Way-To-Go For The Stimulus Bill!

Yes, this SHOULDNT be happening.  I am absolutely positive, that if Obama HADNT passed his porkulous bill.... we WOULD be at near-parity with the Euro.  Investors are slowly waking up that Obama's plan was a HUGE mistake.