Thursday, November 30, 2006

[currency] dollar falls to 14 year low v pound

Forbes reports that the U.S. dollar fell Thursday to its lowest level against the British pound in 14 years and lost value against the euro and Japanese yen.

The dollar's decline came on mixed economic news from Washington and positive developments in Germany, Europe's largest economy. The pound rose as high as $1.9575 from its level of $1.9462 late Wednesday in New York, marking its strongest showing against the dollar since September 1992, before Britain crashed out of the European Exchange Rate Mechanism.

The euro rose to $1.3200 in afternoon European trading, up from $1.3156 late Wednesday. The euro has risen from below the $1.30 mark over the past week amid expectations that the European Central Bank will continue to raise interest rates, while the U.S. Federal Reserve holds, or eventually cuts, rates. The dollar fell to 116.12 Japanese yen from 116.31 yen.


Gavin Ayling said...

I took the mention of the crash out of the ERM by the BBC on this story as a typical example of bias. What relevance has that except to remind people that the EU's currency is not a good plan?

But then I see you mention it which makes me temper my venomous spitting at the BBC. It's obviously considered interesting by those on the right too.

james higham said...

I think the Anericans need to be aware that though they are, of course, strong, there are a few worrying signs for them.