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Monday, October 25, 2004

Dollar drops to 8-month low vs. Euro

From CBS Marketwatch:
The dollar tumbled against the euro for a ninth day Monday, hitting eight-month lows against the European currency, as rising oil prices and next week's tightly fought presidential election cloud the outlook for the U.S. economy.
The dollar, which fell below 107 yen for the first time in more than six months, traded at 106.6 yen compared with 107.24 yen in late U.S. trading Friday.

The dollar's decline against the yen was in line with the greenback's fall against the euro, said Masatoshi Nishi, a treasury and securities manager at Saitama Resona Bank in Tokyo. "Absent clear support, the dollar could fall further to the 105 yen level quickly," Nishi said.

"There is hardly any good factor to be found for the dollar and the U.S. economy, accelerating the dollar-selling," said Nishi.
In the long term, this might be good for America, providing through currency exchange rates the types of tariffs needed for job creation that the free-traders generally reject. In the short term, it might be good for America since it might be one more nail in Bush's coffin (although probably the only part of it most Americans will notice or understand is the higher gasoline prices).