Dollar always cheaper
Spent: 5 December 2003 15.05 last modified: 5
December 2003 15.27 NEWS YORK - these weak were it each trade day
home. The value of the dollar was written each time with respect
to the euro with a new depth record. Or, reasoned from Europe,
reached the euro continuously altitudes not yet earlier known.
After the border of 1,20 dollar had break firstly, the European
currency gained Thursday with 1.2155 dollar its most expensive level
ever. According to experts end is not yet in visibility. ' before the end of the year to see I the rate still falling up to
1,25 dollar for 1 euro ', thus the London currency trader Michael
Klawitter. A colleague of him, at credit Suisse operative
confirms the descending line. ' we buy provisionally no more
dollars ', cited Friday the press office Bloomberg Philipp Vorndran.
The preference for the euro is not astonishing. The
difference in interest is strong. Thus provides a two-year
American government loan 2.02 percent on, whereas a similar obligation
does percent in Germany 2.7. The depreciation of the dollar goes
the last weeks hard, but is already two years to pace. Compared
to July 2001, then 1 euro only 0.84 dollars worth was, the currency 31
per cent in value has decreased. Or reversed: the euro 44
per cent have increased. This value shift means more than that a
range holiday in Florida or shopping in New York for Europeans cheaper
becomes. The exchange rate of the dollar against the euro is the
most important price in the world. More important than those of
oil or computer chips, the magazine puts The economist. The
dollarprijs influence already where the world economy is based on on:
trade assessments, flows, increase ratios, profits, share
prices, inflation figures, interest cogs. Them the relative
scope even changes of an economy. This way the Gross Domestic
Product (GDP) of the eurocountries 60 per cent of that of the United
States was in 2001. By the current koersverhoudingen this has
increased up to approximately 80 per cent. If the economies of
the United Kingdom, Sweden and Denmark are counted, the European Union
has at present an economy larger than the US. The American
dollar not only shrinks compared with the euro. The index which
relates the currency to a weighted average of six other valuta's fell
these yielded to 89.24, the lowest score since January 1997. the
depreciation has stood haaks on the economic convalescence in the US.
Washington presents beautiful macro figures weekly: 8 per
cent on an annual basis, increasing trust trimester increase of
entrepreneurs and consumers, a strong increase of the productivity or
a fall of unemployment. Such indicators according to the
handbooks the rate of the dollar omhoog must drive. The problem
is that the American economy has a double shortage, which becomes
larger and larger. There first of all the trade assessment is.
The growing need for import products does the breach swell up to
5 per cent of the GDP each working day comes the American
volkshuishouding 2 billion dollar shortage. A cheaper dollar the
buy desire must temper. Because those make Japanese cars, Swiss
watches or Italian half-measure packages more expensive. The
correction takes place however but partially. By the low
interest is lend cheap. Moreover foreign companies adapt their
prices and accept lower forks. Moreover also the American
government on the pow lives. The enormous tax reduction, the
expenditure to finance the war in Iraq and medical supplies to pay
for, draws the assessment of the government of president Bush always
more crooked. The shortage has doubled the previous budget year
more than to a record amount of 374 billion dollar and ends up up to
above the 500 billion dollar. European ventures which make much
turnover in the US experience most of the embarrassment of the lower
dollarkoers. Their turnover made in dollars must book them in
euro and is therefore less worth. The economist remain however
optimistic. Europe provides a cheap dollar really what. A
strong euro forces carry out the reforms which have been so far always
postponed. Moreover the European central bank can reduce the
interest without danger for inflation. Cheap loans stimulate
people to spend so that money the economy grows. (c) DUTCH PRESS
AGENCY
Source "dollar always cheaper": nu.nl
Head index page of "dollar always cheaper"
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