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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: macavity who wrote (50903)	6/12/2004 8:23:04 AM
From: elmatador	Respond to of 74559

Haven't touched the issue for a while: Chest improvement in Czech Republic is quite well renowned! Those cirurgically modified papayas are famous!

To: macavity who wrote (50903)	6/12/2004 11:04:02 AM
From: RealMuLan	Respond to of 74559

LOL. I guess you are right, macavity<g>

To: macavity who wrote (50903)	7/7/2004 9:40:53 AM
From: elmatador	Read Replies (2) \| Respond to of 74559

<<dollar's fate seems to be in the hands of the Bank of Japan and the People's Bank of China.>> The Short View: Dollar at mercy of Asian banks By Philip Coggan, Investment Editor Published: July 7 2004 12:42 \| Last Updated: July 7 2004 12:42 news.ft.com The dollar dropped to a three month low against the euro on Wednesday, continuing its recent switchback ride. The primary cause for the drop appeared to be the recent spate of weaker-than-expected US economic data. The data count against the dollar in two ways. First, they diminish the appeal of dollar-denominated assets for those who are attracted by the US's rapid economic growth. Secondly, they lessen the need for the Federal Reserve to increase interest rates rapidly, reducing the appeal of the currency for yield-seeking investors. The dollar has lost ground pretty much across the board, with the yen, sterling and Swiss franc all making progress. What would send the dollar significantly lower would be a decision by Asian central banks to diversify their foreign exchange reserves. These reserve decisions play an important part in global currency markets; according to standard Life, they have risen from 4.1 per cent of global GDP in 1990 to 7.8 per cent at the end of 2003. Emerging economies held 60 per cent of those reserves at the end of last year, up from 37 per cent in 1990. Current account surpluses have, of course, been responsible for the build-up of these reserves. At the same time, the decision of Asian government to link their currency, formally or informally, to the dollar has created immense demand for the greenback. To keep their exchange rates stable, they have sold their domestic currencies and bought US government securities. The dollar made up 69 per cent of global foreign exchange reserves last year, according to the Bank for International Settlements. That was down from the peak in 2001, but the decline is due more to the fall in the US currency's value, than to any lack of central bank enthusiasm. During 2003, some 88 per cent of new central bank holdings were in dollar-denominated form. The problem for those analysing the foreign exchange markets, therefore, is that there are big players who have motives other than maximising profits. Despite the huge turnover in the market, and the widespread availability of important information, such as economic data, the currency market does not meet all the criteria for being "efficient". However much one analyses the prospects for US interest rates or economic growth, the dollar's fate seems to be in the hands of the Bank of Japan and the People's Bank of China.