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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (2246)	6/9/2003 9:48:02 PM
From: GraceZ	Read Replies (1) \| Respond to of 4905

Like I said, the socialist countries currencies have been the ones that have risen against the dollar largely because they've had to hold their interest rates higher to ward off inflation in their own economies. That would include Canada. Canada is a major trading partner and I imagine the falling dollar/rising Can$ has caused some pain for anyone holding US assets, as it will cause pain in Europe. At some point though, US financial assets benefit from a weaker currency because they start to look cheap to someone in a country with a relatively higher currency. Back when the dollar was high we spent a lot of time looking at foreign assets. Plus you can see there is a certain amount of arbitrage going on with foreign stocks that trade in more than one currency. I can think of at least one Canadian miner whose US traded stock has had far greater appreciation than its Canadian traded stock in the last several months. The question that brought up this discussion was, how much more does the dollar drop after dropping from 120 to 92? The unasked question was, do you want to bet on it dropping further? Its a question I'm sure someone who is sitting on a lot of Euros, Can$ or Ausi$ has to be asking themselves. Where we got off on a tangent was where someone brought up the fact that against some of our major trading partners, the dollar hadn't fallen. And I pointed out for them they haven't felt the pain of a falling dollar. The assumption was the dollar hadn't fallen against their currencies...YET, but I don't think you can make that assumption.