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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Thomas A Watson who wrote (394019)	4/17/2003 12:37:17 PM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 769670

The dollar disagrees The currency market doesn't believe in the good news being spun by the stock market. April 17, 2003: 9:18 AM EDT By Justin Lahart, CNN/Money Senior Writer NEW YORK (CNN/Money) - If it really is a brand new day for stocks, why has the dollar been drooping? After trading in lockstep throughout the year, the greenback and the U.S. stock market have taken diverging paths lately. While stocks over the past week have been higher, the dollar has come under pressure against the other major currencies. "The dollar has broken two linkages," said Brown Brothers Harriman senior foreign exchange economist Anne Mills. "One of them is that after the last Gulf War the dollar went up nice and big. This Gulf War, the dollar fell like it did before the last one, but it hasn't come back. Linkage number two, the stock market has been working raggedly higher and the dollar is working it's way raggedly lower." There are a couple of reasons being bandied about for the dollar drop -- traders selling short and reports that central banks around the world are boosting euro positions. Both fall under the category of speculation, and in the rumor-heavy currency market need to be taken with a grain of salt. Greenback Watch Dollar dazed The next threat Buck bashing What's worrisome is that the dollar selling doesn't make much sense within the context of a rising U.S. stock market. According to the optimists, with the war over so quickly, the economy will be loosed of its shackles and profits will rebound, ushering in a new bull market. That's a scenario that should buck up the buck, since it would draw both business and investment to America's fair shores. Cut through the noise, and the message from the currency market is that it doesn't buy into the idea of a new bull market. Somebody has to be wrong.