Category Archives: Monetary Policy

How low can it go…..Dollar hits 15yr low v yen after G20

How low can you go…………..

Dollar hits 15-year low vs. yen after G-20

Pledge to avoid competitive devaluation fails to halt slide

The U.S. dollar tumbled across the board Monday, pushing the greenback to a fresh 15-year low against the Japanese yen, as the outcome of the meeting of finance ministers and central bankers from the Group of 20 nations gave traders no reason to stop selling the U.S. currency.

The dollar index (DXY 77.13, -0.34, -0.44%), a measure of the U.S. unit against a basket of six major global currencies, fell to 76.949, compared with 77.469 in late North American trading on Friday.

Germany Accuses US of Indirectly Manipulating Dollar

US manipulate the dollar? Now we would never do that would we?  Yeah right!

The only thing falling faster and lower than Obama’s poll numbers is the dollar.

Germany Accuses US of Indirectly Manipulating Dollar

German Economy Minister Rainer Bruederle on Saturday took issue with what he called a U.S. policy of increasing liquidity, saying it indirectly manipulated exchange rates.

The U.S. Federal Reserve is widely expected to embark on a fresh round of asset purchases to prop up the economy.

“There was criticism of the American policy of monetary easing, or creating more liquidity,” Bruederle said after a meeting in South Korea of finance officials from the Group of 20 economic powers.

“I tried to make clear in my contribution to the discussion that I regard that as the wrong way to go,” he said.

“An excessive, permanent increase in money is, in my view, an indirect manipulation of the (foreign exchange) rate.”

Foreign exchange rates should be determined by markets, said Bruederle, who was attending the G20 meeting in place of Germany’s hospitalised finance minister.

US is “Practically Owned” by China: Analysts

In another “Dog Bites Man” news story, and continuning today’s theme of “who would’a thunk”….

The US supremacy as the top world economy will end sooner than many people believe, so gold is a better investment than the dollar despite it hitting a new record, Tom Winnifrith, CEO at financial services firm Rivington Street Holdings, told Monday.

Gold [XAU=X  1308.5  -0.30  (-0.02%)   ] hit a new record high Monday and silver [XAG=X  21.7  -0.17  (-0.78%)   ] rose to another 30-year peak as investors were worried about the dollar weakening further after the Federal Reserve hinted at more quantitative easing last week.

The US trade deficit and debt continue to grow and the authorities are reluctant to address the problem, preferring to print money, Winnifrith said.

“America is practically owned by China,” he said.

Read the Rest….