why is the value of the dollar going up recently

maverickdoc · Intermediate Crude Joined: Jan 12, 2005 Posts: 826

The US is forcing Iraq to trade oil in Dollars again and deposit the dollars with the fed. Don't expect the rally to last log, in the past three days big institutions, Russia, and maybe even China unloaded large amounts of US dollar.

"The Iraqi central bank has built up five billion dollars in reserves in recent months which have been deposited with the US Federal Reserve, a top US treasury official said Tuesday."

http://www.hispanicbusiness.com/news/newsbyid.asp?id=20833

There is talk that Russia is moving towards petro-euro, any news?

bruin · Posted: Wed Feb 09, 2005 1:51 pm Post subject:

The dollar is also helped by Bush proposing cut backs to spending. Also, Greenspan indicated at least 3 more interest rate hikes to 3.25%.

Pops · Posted: Wed Feb 09, 2005 2:10 pm Post subject:

I agree, it is our new budget: forget education, veterans and old folks â€“ but make sure the tax cuts for the 99.9th percentile become permanent.
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MarkL · Moderator Joined: Sep 13, 2004 Posts: 283 Location: US

maverickdoc · Intermediate Crude Joined: Jan 12, 2005 Posts: 826

smiley · Fission Joined: Apr 16, 2004 Posts: 2145 Location: Europe

http://www.publicdebt.treas.gov/opd/opdpenny.htm

$7,629,245,507,947.33 on 02/10/2005
$7,379,052,696,330.32 on 09/30/2004
---------------------------------------------- -
$250,192,811,617.01

That means that Bush has managed to spend over 250 billion dollar in the first 4 months of this fiscal year! Shocked

I don't think he can keep this year's deficit under 600 billion.

maverickdoc · Intermediate Crude Joined: Jan 12, 2005 Posts: 826

Evltre · Posted: Sun Feb 13, 2005 6:13 pm Post subject:

tmazanec1 · Heavy Crude Joined: Oct 12, 2004 Posts: 424

Well, it has dropped a bit the last few days, at least compared to the Euro.

Kingcoal · Posted: Mon Feb 14, 2005 12:48 pm Post subject:

When the losses quit being paper losses, crap hits the fan. China and Japan want the buying to continue. When Americans loose their buying power, they loose their power.

In the mean time, Europe is finding out that having lots of buying power isn't such at great thing for profitability of their companies.

Volkswagen Profit Falls on Sales Drop in China, U.S.

maverickdoc · Intermediate Crude Joined: Jan 12, 2005 Posts: 826

US net capital inflows dip to $61.3 bln in Dec cutting it real close

maverickdoc · Intermediate Crude Joined: Jan 12, 2005 Posts: 826

maybe I should change the name of this thread

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh26800_2005-02-22_13-13-54_l22106073_newsml

1.30 to 1.32+ over night!!!

Hold on folks its going to get bumpy Shocked

skateari · Intermediate Crude Joined: Sep 26, 2004 Posts: 548

I think the dollars recent comeback is just a move by China to allow them a high price on their dollars when they sell them. China has been using its banks to trade dollars recently in order to raise the value of the dollar. This, I think, is a move to allow them to sell out of the dollar at a high price. It should also allow the world a chance to sell their dollars at minimal loss. This should all work well if it is managed and if everyone knows when to dump.

This is scary because as of the last few days, massive selloffs of the dollar has been occuring. This could mean that the dollars high-point has been reached and now the planned selloff will happen. This will be a very hard hit to the dollar as all of its supports and pegging will bail out all at once so China will only incure minimal losses.

Nows the time to buy Euros or Gold Crying or Very sad

maverickdoc · Intermediate Crude Joined: Jan 12, 2005 Posts: 826

One major reason people are bailing out of the dollar is because oil is getting too expensive to buy in dollars. Think about it if you hold dollars then a barrel of oil cost $51. If you hold euros it you can get it for 38.63 euros. This is because crude is universally priced in dollars and if you hold a currency like the euro that is stronger, you win because of the conversion (51/1.32) quite a bargain don't you think? You may have to finally convert your currency to dollars (and take a conversion risk) but you still come out way ahead. Iran currently accepts Euro so itâ€™s even better no conversion risk.

As the price of oil goes up the value of dollar will go down

pea-jay · Posted: Wed Feb 23, 2005 2:40 am Post subject:

Looks like some of our Asian creditors are "reexamining" their dollar holdings. S. Korea wants to diversify their holdings. Watch out for falling dollar (values).
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