U.S. dollar dives to record lows against select currencies on debt impasse

Global currency investors voted thumbs down on Washington's failure to come up with a debt deal, sending the U.S. dollar to record lows against select currencies in a possible preview of what will happen if the Obama Administration and Congress fail to reach a consensus.

Traders in Asia sold the U.S. dollar against nearly every currency in the hours after speeches by President Barack Obama and House Speaker John Boehner (R., Ohio) highlighted how far apart the two sides remain in crafting a compromise that would enable the U.S. to raise its debt ceiling and create a plan to reduce the government's borrowing needs over the long term.

The dollar hit all-time lows against the Swiss franc and the Singapore dollar and fell against the euro and the Australian and Canadian dollars. It was near a 14-year low against the Malaysian ringgit. And it was at or near post-financial-crisis lows against the South Korean won, the Thai baht, and the Philippine peso, prompting central banks in those countries to intervene in currency markets to stem the tide, according to traders familiar with the matter.

In a sign of the worry pervading financial markets, the Philippines said it is girding for disruptions that could emanate from Washington's failure to resolve the impasse.

http://blogs.wsj.com/washwire/2011/07/26/live-blog-the-u-s-debt-battle/

:woohoo:

:patriot:

:rofl:

I swallowed my coffee before I saw this.

this is going to play hell with imports into this country....big box store prices are going to hit the roof

:rofl:

reserve currency... that' a good joke.

*sigh* As if I don't have enough reasons to hate republican politicians.

May as well go now while the dollar is relatively strong. After this crap move is finished so will the dollar. In the past 10 years OPEC has considered 3 times changing the reserve currency from the US dollar to the Euro or other currency. The first vote had one vote, the 2nd had 2 and the 3rd had 3 (with 2 or 3 maybe votes presumably according to a friend of mine in the field). Recently Russia and China have asked that the US dollar be removed as the oil reserve currency.

If that happens then all hell will break out and we will see hyper inflation. What is happening how will be NOTHING. So enjoy you vacation to London and Paris. Unless you are one of the elite, it will be the last one you can afford.

It's been a smart move. I may just move everything into gold soon. I may also just get into some more debt so it's easy to pay off, that mountain cottage is looking good right now.

...certain key events, and are telegraphing their intentions to wealthy investors.

Oh, surely not. That would be virtually identical to Insider Trading.

:sarcasm:

Most if not all Economist? Wall Street? The World Markets?

Just not the Republicans....

Somebody will come out and say that this is good because it promotes exports. This will become the hate radio and tea party talking point in two days, maybe one.