Monday, October 06, 2008
Dollar surge
A Euro now fetches only $1.36, down from $1.60 earlier this year and two cents since Friday. Not "King Dollar" yet by a long shot, but further evidence that doomsayers notwithstanding, the American dollar is still the place to be when Demon Risk rampages through the markets.
2 Comments:
By 
, at
Mon Oct 06, 08:38:00 AM:
Actually, the Japanese Yen is doing better against all currencies right now.
But truly, something else is going on than just the default on hundreds of thousands of sub-prime mortgages in the US.
US money center banks are hoarding dollars against the prospect of loss of under-performing assets and bad collateral from other trading banks.
Europe doesn't have the dollars it needs for all the international transactions that take place every day, so the basic strength (or weakness) in the Euro is beginning to be tested.
-David
By , at
Mon Oct 06, 05:50:00 PM:
We're screwed, but they're screwed even worse.
