FundAce,
Currencies move against each other for many reasons, including inflation fears. Figure out the peso for the last 2 years, however. My guess is it's held up because it over corrected in the crash of '95, and it's only a matter of time before it moves lower.
But longer term it seems that economic conditions and interest rates are going to be the major determinants. Now, inflation levels need to be somewhat equal, as they basically are in the U.S, Germany, and Japan.
I don't think the type of inflation "fears" that we have here, and have had for years, will have a long term effect on the dollar. Unless the numbers start to show inflation becoming a reality.
The dollar is at the top range of it's latest upmove, so a correction is likely, and probably is what we are seeing.
The Japanese increase in national sales tax is 66.7%, not the 40% I had posted.
I suspect that the dollar upmove was not as big in Qtr.1 as the 4th quarter, and may not be such a drag on Novell's profits. But I don't have the Sept.30, and Dec.31 levels to prove that.
Best,
Dwight |
