Dollar falls to lifetime low versus euro

Source: Reuters

FOREX-Dollar falls to lifetime low versus euro

NEW YORK, Sept 20 (Reuters) - The dollar fell to a record low against the euro on Thursday and reached parity with the Canadian currency for the first time in 31 years on expectations of more cuts in U.S. interest rates after this week's sharp reduction.

The dollar breached the key $1.40 level against the euro in early European trade, sparking a broad-based euro <EUR=> rally that continued into the New York session. The euro zone single currency also rose above 70 pence against sterling <EURGBP=> for the first time in one and a half years.

The Canadian dollar briefly reached parity with the U.S. dollar <CAD=> for the first time since 1976, supported by lofty commodity prices, a strong domestic economy and concerns about the U.S. economic slowdown. The dollar is also trading at a two-and-a-half-year low against the Swiss franc.

The Federal Reserve on Tuesday slashed rates by a half percentage point to 4.75 percent to shield the U.S. economy from a deepening housing slump and credit market turbulence.

"This is a continuation of selling seen after the Fed's rate cut, and with the dollar index closing in on all-time lows, people are looking for reasons to target that level," said Matthew Strauss, senior FX strategist at RBC Capital Markets, Toronto. "People are convinced the Fed will have to cut by more than 50 basis points."

Remarks by Fed chief Ben Bernanke before a Congressional committee had limited impact.

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Read more: http://investing.reuters.co.uk/news/articleinvesting.aspx?type=usDollarRpt&storyID=2007-09-20T164808Z_01_N20413294_RTRIDST_0_MARKETS-FOREX-UPDATE-10.XML

economy is about to collapse and in a big way...

To many warning signs out here for those that care to look beyond the tele-prompters and notice.

Like THAT'S going to happen.

If they trade in dollars,and opt to change to euros,what will that do to our debt?

http://www.thisnation.com/question/006.html
-snip-
The remaining $3.3 trillion is held the Federal Reserve and other "federal government accounts." The most notable of these "other accounts" is the Social Security Trust fund, from which the government has borrowed money to pay for other programs and expenditures. By definition a trust fund is maintained to pay for spending for a given purpose at a later date. The Social Security Trust fund was intended to be a "savings account" where excess payroll taxes would be kept to pay Social Security benefits in the future when payroll taxes were no longer sufficient to pay all benefits. Over the last several years, billions of dollars have been borrowed from the Social Security Trust fund--the money that should be available to cover shortfalls in the Social Security program is not there. If the program to remain solvent, this money must eventually be repaid.

now that the dollar is equal to the Peso Loonie

we can have the Amero

http://youtube.com/watch?v=fIEP7jreJ-Y

"But that's the fault of the liberals for letting us republicon homelanders steal the elections - smirk, smirk, smirk"

- Commander AWOL

And everybody knows that Socialism is a failure. No way their currency is superior to ours 'cuz we be a free market nation.

:sarcasm:

But you know, any other "freedoms" are just for uppity people...

pray for my credit card.

Books on audio for German, French and Dutch seem to be very popular these days, in part because a lot of Americans are leaving for those 3 countries to stay and work permanently. I can certainly understand why. For the small price of learning and using a new language, they get better hours and work in a country where they draw a salary in Euros, and send their kids to better schools. Nobody likes Britain for some reason, though it may have something to do with the fact that their banks are collapsing in all directions.

I'm certainly becoming increasingly skeptical about the value of the dollars in my pocket. If I could move and draw a salary in Euros, I'd certainly consider it.

Not really, no bank has collapsed.

The temporary run on Northern Rock is "banks collapsing in all directions" like the puddle in my garden path is like the second coming of Noah.

I canceled my European vacation plans. Even my Canadian vacations are in jeopardy now. Rather, I have just scaled them down a bit. The Canadian dollar has now reached parity with the U.S. dollar.

At least you will have derived warm feelings from not having contributed to our fascist government or our privately controlled Federal Reserve banking system.

"But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost." Ben Bernanke