Argentina
Editor’s Note: new low of the dollar against the euro, does indicating new lowering of rates by the Fed? Will you hear Trichet complaints in Europe by the loss of competitiveness of their companies globally? To what extent the disinterest by the dollar in the world achieve lower it? Can send me your feedback a: will be just a memory the strong dollar? Buenos Aires, Argentina on February 28, 2008 is the dollar which weakens or the euro which strengthens? it is not that the euro is strengthening by a greater health of the economies that make up the area, but rather, is the dollar which weakens further against the single currency. In fact, the dollar is weakening against a large proportion of coins in the world. At least against major currencies the dollar weakening can be seen through an index of dollar which measures the ratio of the U.S. currency against a basket of currencies (EUR, JPY, GBP, CAD, CHF and SEK). This index also reached a new low yesterday to play in 74,18. In an article that I wrote almost 15 days ago (), given my impression about the evolution of the dollar, contradicting some opinions that they suggested that the dollar had touched the floor. At the moment, the markets are giving me reason and yesterday the dollar again in touching a new low in relation to the euro. I understand that the euro to US $1.50 was a psychological barrier, and very few are encouraged to think in a euro above that value. But the truth is that yesterday broke that barrier and the euro touched 1,5143 USD half of day in New York. What are they wanting to say the markets with this behavior? My impression is that they are already discounting a new cut in rates by the Fed in its desperate attempt to sustain growth, while the ECB will keep them unchanged to keep pressures on prices subject.