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Rocketta
Apr 22nd, 2008, 05:46 PM
Dollar slumps to new record low versus euro

By MATT MOORE, AP Business Writer
1 hour, 7 minutes ago


The euro roared to another record high Tuesday, briefly crossing $1.60 in late afternoon trading in Europe after a pair of European Central Bank governors said high inflation may cause the bank to raise interest rates.
The euro rose as high as $1.6002 before falling back to $1.5968, above the $1.5916 it bought in New York late Monday. The euro has risen 20 cents against the dollar in just five months and 10 cents in just two months.


The 15-nation currency hit its last record of $1.5982 last Thursday. It dropped back on Friday after a Wall Street rally generated optimism that the worst of the U.S. credit crunch may be over, but rose again on Monday when Bank of America's first-quarter earnings fell short of expectations.


The dollar's slump is a boon for U.S. companies that rely heavily on exports, but it's the bane of travelers as worldwide inflation rises, air fares climb and the price of everything from beer in Munich to fine wine in Paris to gondola rides in Venice are even pricier.


Tuesday's remarks by Yves Mersch in the Financial Times Deutschland and comments made by Christian Noyer to France's RTL radio showed the governing council of the ECB is committed get euro zone inflation back around 2 percent, below the current 3.6 percent it is at now.


It effectively threw water on any hopes of a rate cut by the bank, which has kept its benchmark rate unchanged at 4 percent since June even as the Federal Reserve, Bank of England and Bank of Canada have consistently lowered their own rates.


On Tuesday, the Bank of Canada slashed its interest rate by half a percentage point to 3 percent. It also hinted another cut may be coming as it feels the effects of a slumping economy at its largest trading partner.
The dollar has been weighed down by a combination of gloomy U.S. economic data and high European inflation fueling expectations that the Fed will cut interest rates yet again, while the European Central Bank will leave rates unchanged.


Lower interest rates can weigh on a nation's currency as traders transfer funds to countries where they can earn better returns, while higher rates are used to curb inflation.


The British pound has been hit by a cautious reception for Monday's announcement by the Bank of England of a 50 billion-pound ($100 billion) plan to allow banks to swap mortgage-backed securities for Treasury bills.
It reversed its declines though on Tuesday, rising to $1.9951 from $1.9798. The dollar was down against the Japanese currency, dropping to 103.09 yen from 104.17 yen.


The high euro is bound to cause more pain for European manufacturers who look to the United States because it means prices for their goods are more expensive.


Airbus, a unit of European Aeronautic Defense and Space Company announced a general price increase for its aircraft of an additional $2 million per single-aisle aircraft and $4 million per wide-body long range and A380 family aircraft as of 1 May, citing the high euro and the cost for raw materials.


In Germany, automaker BMW AG has said it will start producing more cars in South Carolina in a bid to take advantage of the cheaper dollar and Volkswagen AG has said it is likely to build a new production plant in the United States, too.

Scotso
Apr 22nd, 2008, 05:52 PM
Hoppefully the dollar will recover ones the Federal Retarded stops lowering interest rates. They obviously don't realize that ridiculous low rates are what caused all our problems to begin with.

But lower rates, and weaker dollar, a weak economy... it's all leading to us being able to afford much less. But at the same time everything is getting much more expensive. Gas prices are KILLING me.

But still, oil companies are making record profits and speculators are jacking prices up even further. We seriously need to boycott gas as much as we can, send them a message that we're not going to purchase it unless they reduce rates to a more reasonable level. There's no REAL reason for gas to be over even $2/gallon.

Hopefully the economy recovers soon and interest rates can go back up. Then, I think the dollar will recover to a reasonalbe exchange rate. In the meantime, it's not really hurting us that bad, unless you're taking a trip to Europe. It will go back up eventually. Unless our country falls apart.

But consumers seriously need to grow some balls and do the smart thing, refuse to buy any gas that you don't absolutely need and cut way back on driving. Making the oil companies lose money is the only way to change prices for the better.

Scotso
Apr 22nd, 2008, 05:55 PM
The euro roared to another record high Tuesday, briefly crossing $1.60 in late afternoon trading in Europe after a pair of European Central Bank governors said high inflation may cause the bank to raise interest rates.

This is why inflation is so bad here and the dollar is so weak... because we lowered rates to fight a recession (which is stupid to do with inflation so high and will lead to even more financial issues in mortgages and such). Eventually the European banks will need to lower rates, too. I don't know why in the world they think they should raise them, unless they want a stronger Euro. But that only hurts exports, so I don't know.

It makes me sad that the dollar is so weak, but I'm really, really hoping it will get better after this recession crap is done.

Svetlana.
Apr 22nd, 2008, 05:56 PM
there is no end for bad news.

Scotso
Apr 22nd, 2008, 06:09 PM
Oil nears $120 a barrel:

http://money.cnn.com/2008/04/22/markets/oil.ap/index.htm?postversion=2008042212


It was below $100/barrel a few weeks ago. :scared:

We're in such horrible shape, in EVERY area of the economy. :sad: High gas and goods prices, high inflation, low interest rates, weak dollar, poor stock market. It's just horrible.

BigB08822
Apr 22nd, 2008, 06:12 PM
This is getting out of hand! I got a new job with a nice raise and it is all going to gas! Why are the oil companies making record profits when we are paying record prices for gas? I am sorry but it is time to tap into some oil reserves. When I was 16, gas was $ .90 a gallon! I could fill up my entire car for $12 and now $12 doesn't put but maybe a quarter tank in my car.

With gas almost at $120, that means it has had a 20% raise in recent weeks. OMG!

Scotso
Apr 22nd, 2008, 06:20 PM
When I was 16, gas was $ .90 a gallon!

Same here, those were the days.

But OPEC has discovered that Americans love to drive, and that they'll pay a lot to do it. So they cut production to lower supply and increase demand/prices.

We're making those Sultans very rich.

eugreene2
Apr 22nd, 2008, 07:13 PM
I'm gonna be SOOOOOOOOOOOOOOO broke when I come back from Wimbledon. LOL

Lunaris
Apr 22nd, 2008, 07:22 PM
If anyone is interested, not only Euro but also Czech koruna has reached a new high compared to the US dollar. This time last year one dollar was worth more than 20 korunas, now it is about 15. That's more than 25% in one year.

Rocketta
Apr 22nd, 2008, 07:28 PM
I'm gonna be SOOOOOOOOOOOOOOO broke when I come back from Wimbledon. LOL


yes you will but not because of the Euro, the pound is even worse. :)

sakya23
Apr 22nd, 2008, 07:38 PM
maybe we americans need to change our driving habits. 4 dollars a gallon isnt a lot when compared to other countries in Europe and Japan. if you buy a huge suv, expect to pay for it.

Rocketta
Apr 22nd, 2008, 07:42 PM
maybe we americans need to change our driving habits. 4 dollars a gallon isnt a lot when compared to other countries in Europe and Japan. if you buy a huge suv, expect to pay for it.

I don't have a huge suv and it costs me close to $40 a tank. I agree that cars should have better gas mileage but I don't think comparing driving in the US to countries that are not bigger than most states in the US.

mirzalover
Apr 22nd, 2008, 07:43 PM
I love my suv but my dad hates giving me money for gas.:lol:I really hope the dollar can bounce back, its getting harder every year for me to go to europe.

mirzalover
Apr 22nd, 2008, 07:45 PM
I don't have a huge suv and it costs me close to $40 a tank. I agree that cars should have better gas mileage but I don't think comparing driving in the US to countries that are not bigger than most states in the US.

Yeah and plus they walk and bus way more then american do. I'm sure most people wouldnt mind walking or riding the bus but things are so far apart in most cities in america (the ones I've been to) that its way easier to drive.

frenchie
Apr 22nd, 2008, 07:45 PM
Time to make a shopping trip to NY for the europeans!!

HippityHop
Apr 22nd, 2008, 09:26 PM
This is getting out of hand! I got a new job with a nice raise and it is all going to gas! Why are the oil companies making record profits when we are paying record prices for gas? I am sorry but it is time to tap into some oil reserves. When I was 16, gas was $ .90 a gallon! I could fill up my entire car for $12 and now $12 doesn't put but maybe a quarter tank in my car.

With gas almost at $120, that means it has had a 20% raise in recent weeks. OMG!

1955 Cost of living.

New House - $10,950.00
Average Income - $4,137.00/year
New Car - $1,910.00
Average rent - $87.00/month
Tuition to Harvard University - $800.00/year
Movie Ticket - $0.75
Gasoline - $0.23/gal
US Postage stamp - $0.03
Eggs - $0.27/dozen
Bacon - $0.58/pound

Expat
Apr 22nd, 2008, 09:32 PM
how much do you all spend a week on gas
if its hurting you so bad
time for me to get the toyota prius
in europe people travel by subway/buses because its more quicker than traveling with car
in USA there's no public transport at all :o

Svetlana.
Apr 22nd, 2008, 09:45 PM
Same here, those were the days.

But OPEC has discovered that Americans love to drive, and that they'll pay a lot to do it. So they cut production to lower supply and increase demand/prices.

We're making those Sultans very rich.

Sure Americans like to drive, but they are not the ones to blame. Rising Chinese and Indian economies let their people buy more cars and it's only a beginning. Can you imagine one billion of people in China and one billion of people in India switching their bicycles to cars? :)

kris719
Apr 22nd, 2008, 09:59 PM
in USA there's no public transport at all :o
yes there is, people just choose not to use it.

I try not to be cynical about issues like this, but I do try and be realistic. And the real issue behind this is that Americans in general aren't willing to do the things that are in their power to stop things like high gas prices or electricity prices. It's not that people don't know about what they can do to alleviate some of this price pain, they just choose not to do it. For example, take the bus, subway, trolley etc. when you can. Think about walking to errands or events instead of driving. think about purchasing a car with better mileage. There are people all over this world who function normal lives without cars altogether, so maybe move to the city and dispose of your car altogether. The list is similar for people who whine about electricity bills. WHile they're busy complaining about their bills to the electric company, they are busy running their heater when its 80 outside, or have a light on in a room they haven't visited for 40 minutes. The point is, if something is too much trouble, people won't do it.

Whitehead's Boy
Apr 22nd, 2008, 10:03 PM
yes there is, people just choose not to use it.


Except in New York City and a couple of other exceptions, public transport in the US is pathetic.

Svetlana.
Apr 22nd, 2008, 10:12 PM
We have metro in DC, but it takes forewer to get from one point to another. For instance, to get from Virginia to Maryland by metro you would need to go to DC first and then take another train that will take you to MD - it takes about 20 min. to get there by car and about 1 hour by metro :(

kris719
Apr 22nd, 2008, 10:13 PM
Except in New York City and a couple of other exceptions, public transport in the US is pathetic.
While compared to some other countries, I would agree that our public transportation leaves a lot to be desired, but the systems are in fact there for use to provide people with transportation at relatively no cost. Why people whine about gas prices when they have an affordable option is beyond me.

mirzalover
Apr 22nd, 2008, 10:19 PM
While compared to some other countries, I would agree that our public transportation leaves a lot to be desired, but the systems are in fact there for use to provide people with transportation at relatively no cost. Why people whine about gas prices when they have an affordable option is beyond me.

True but if its shitastic, or you have to go out of your way to get on the bus or subway, and it takes longer then it does to drive what do you think people are gonna do?

Scotso
Apr 23rd, 2008, 02:57 AM
I don't have a huge suv and it costs me close to $40 a tank. I agree that cars should have better gas mileage but I don't think comparing driving in the US to countries that are not bigger than most states in the US.

Agreed. We just don't have the same infrastructure.

And the "prices are much higher in Europe" argument is bunk, because their taxes on gas are the only reason for it.

My car gets about 36mpg, that doesn't mean that the high prices don't hurt me, too. It just means that I'm a big more responsible.

Scotso
Apr 23rd, 2008, 03:00 AM
1955 Cost of living.

New House - $10,950.00
Average Income - $4,137.00/year
New Car - $1,910.00
Average rent - $87.00/month
Tuition to Harvard University - $800.00/year
Movie Ticket - $0.75
Gasoline - $0.23/gal
US Postage stamp - $0.03
Eggs - $0.27/dozen
Bacon - $0.58/pound

Yeah, but adjusted for inflation those prices make sense. But the rise from $1/gallon to nearly $4/gallon in less than 8 years doesn't.

Scotso
Apr 23rd, 2008, 03:01 AM
yes there is, people just choose not to use it.

There is absolutely NO public transport where I live. The same can be said of any area that isn't a semi-large city. You don't know what you're talking about here. If there was a metro in my town, I would take it. But this isn't NYC.

but you're right, we should just all move to cities. we don't need farms and stuff, after all... :rolleyes:

Selah
Apr 23rd, 2008, 03:04 AM
Oh well, my worst fears since I'll be traveling to Europe next month. I can either pinch pennies or go for broke.

kris719
Apr 23rd, 2008, 03:08 AM
True but if its shitastic, or you have to go out of your way to get on the bus or subway, and it takes longer then it does to drive what do you think people are gonna do?
my point exactly, people aren't willing to go out of their way. Until they are, I don't want to hear them whine about gas prices.

There is absolutely NO public transport where I live. The same can be said of any area that isn't a semi-large city. You don't know what you're talking about here. If there was a metro in my town, I would take it. But this isn't NYC.

but you're right, we should just all move to cities. we don't need farms and stuff, after all
and there is nothing where I live either. There are other ways to conserve gas besides riding the subway that people turn a blind eye to as well. Until they do these things, I don't want to hear them whine about gas prices.

Rocketta
Apr 23rd, 2008, 03:38 AM
Oh well, my worst fears since I'll be traveling to Europe next month. I can either pinch pennies or go for broke.

go for broke. ;)

HippityHop
Apr 23rd, 2008, 02:47 PM
Yeah, but adjusted for inflation those prices make sense. But the rise from $1/gallon to nearly $4/gallon in less than 8 years doesn't.

Considering the fact that China and India are now players in the gasoline consumption game they do make sense. Be thankful that you can get gas without having to sit in gas lines for hours on odd and even days.

HippityHop
Apr 23rd, 2008, 02:51 PM
Agreed. We just don't have the same infrastructure.

And the "prices are much higher in Europe" argument is bunk, because their taxes on gas are the only reason for it.

My car gets about 36mpg, that doesn't mean that the high prices don't hurt me, too. It just means that I'm a big more responsible.

So if they are paying the money in taxes is the money less significant to their budgets? :confused:

Six dollars/gallon is still six dollars/gallon. The tax portion is not paid with monopoly money.

kwilliams
Apr 23rd, 2008, 03:01 PM
At least the upside is more people are visiting America and spending their money. I much prefer travelling around Europe but when I go to America I'm always so frivilous with my cash. Apparently Irish people have spent one billion dollars in the states in both 2006 and 2007 and numbers going from Ireland to the USA would be quite small compared to visitors from Britain, Germany, Italy or Japan. The weak dollar is also pumping money into the economy.

Rocketta
Apr 23rd, 2008, 03:06 PM
So if they are paying the money in taxes is the money less significant to their budgets? :confused:

Six dollars/gallon is still six dollars/gallon. The tax portion is not paid with monopoly money.

I think his point is that technically they aren't paying more for gas they are just taxed more. That how much Americans drive or how little Europeans drive has little to do with their actual gas prices? :shrug:

Wigglytuff
Apr 23rd, 2008, 03:10 PM
will someone please silence hippityflop!!

HippityHop
Apr 23rd, 2008, 03:26 PM
will someone please silence hippityflop!!

Why don't you do it?

HippityHop
Apr 23rd, 2008, 03:31 PM
I think his point is that technically they aren't paying more for gas they are just taxed more. That how much Americans drive or how little Europeans drive has little to do with their actual gas prices? :shrug:


Perhaps. But there are those who think that Americans should be paying much higher taxes on gasoline. That would force us to drive less. But somehow I have the feeling that no matter how high gas prices go, people are still going to drive. Oh, they'll bitch and moan but they will still drive two blocks to the store.

kris719
Apr 23rd, 2008, 09:42 PM
Perhaps. But there are those who think that Americans should be paying much higher taxes on gasoline. That would force us to drive less. But somehow I have the feeling that no matter how high gas prices go, people are still going to drive. Oh, they'll bitch and moan but they will still drive two blocks to the store.
Exactly.

selking
Apr 23rd, 2008, 09:48 PM
beautiful as I leave for study abroad in like 12 days

switz
Apr 24th, 2008, 12:42 AM
The Australian Dollar is almost at parity with the US :lol: at it's highest levels in 25 years. not really a good thing unless you're going there or an importer though.

cynicole
Apr 24th, 2008, 02:43 AM
I used to live automobile-free until a couple of years ago. Not coincidentally, back then I lived in a nice part of California and about a mile away from a train station and bus depot . If I couldn't access what I needed by foot, I could easily take a bus or train to where I needed to go. The amount of money you save without having to worry about gas, insurance and car payments is significant.

Where I live now (not even 10 miles outside of Boston), you couldn't really walk safely even in the nice weather. If you try to ride a bike, what with all the crazy Massachusetts drivers and no bike lanes, good luck. And winter makes any option other than a car impossible. And our form of mass transit, the MBTA, isn't even practical for me. We'd have to pay $4/gallon for it to even come close to equaling how much I would have to shell out for public transportation (which, would cost more for me in winter since I'd have no option but to DRIVE to a train station or bus stop). I work at night so carpooling is out of the question.

I nearly decided to move within a 10-minute walk from my work and do without a car again but when I cranked the math, it was less affordable. (I work just outside of Boston now.)

Financially, what's really annoying the heck out of me, are the food prices. Today it costs us $26 for a 25lb bag of rice when, back in December, we were paying $12 for the same exact bag. The kid meal at the local food joint (which consists of a burger, fries and soda) went from $3.49 to $5.26 since January!

wta_zuperfann
Apr 25th, 2008, 03:31 AM
The American economy is f*cking up ever more thanks to Bush_Stupid but you hardly ever hear any public complaints or TV news reports about it. But, it's a good bet that if a Democrat goes into the White House in November the economy will be a primary feature of the nightly news and every day discussions.

VRee_Willario
Apr 25th, 2008, 04:06 AM
That is good;) Finland is the only Nordic country that has euro:cool:

Pasta-Na
Apr 25th, 2008, 04:15 AM
and the price of rice too :tape:

azdaja
Apr 25th, 2008, 01:09 PM
Financially, what's really annoying the heck out of me, are the food prices. Today it costs us $26 for a 25lb bag of rice when, back in December, we were paying $12 for the same exact bag. The kid meal at the local food joint (which consists of a burger, fries and soda) went from $3.49 to $5.26 since January!
what's annoying to you is for others a question of life and death. in 3rd world countries rising food prices have already caused protests which resulted in deaths of over 100 people and it's probably only the beginning. i've been reading a lot about this recently. the un issued a warning that we are about to face the biggest food crisis since the ww2. i guess you can expect food prices to go up even further over next year or 2. but that has nothing to do with the weak dollar, the food prices are going up everywhere.