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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (19960)	12/30/2004 6:29:55 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

Update 1: Dollar Falls to Another Record Low Vs. Euro 12.30.2004, 02:42 PM The dollar slipped to another record low Thursday against the euro in thin, volatile holiday trading. The euro hit $1.3667 in afternoon trading in New York, above Wednesday's late rate of $1.3598 and the previous record set Wednesday of $1.3646. The euro also reached an all-time high against the Japanese yen of 141.61 in Asian trading Thursday, then eased back to 140.44 yen in afternoon trading in New York. Trading volume during the Christmas and New Year's holidays has been light, causing exaggerated currency swings in foreign exchange markets. The low liquidity has encouraged traders to aim for new record highs and lows, said Greg Niebank, a trader at CMC Group in New York. "When you're close to highs and close to lows, they do get targeted," Niebank said. The dollar fell despite a bigger-than-expected drop in unemployment claims reported Thursday by the Labor Department. New applications filed for jobless benefits declined by a seasonally adjusted 5,000 to 326,000 for the week ending Dec. 25. Economists were expecting claims to rise to around 335,000. The growing U.S. trade and budget deficit have weighed down the dollar, and many analysts predict the dollar will keep weakening into the new year, with the euro likely hitting $1.40 or higher by the end of 2005. The 12-nation euro initially fell against the dollar after its 1999 debut, but it has risen about 66 percent since bottoming out at 82 U.S. cents in October 2000. Though Washington professes a "strong dollar" policy, most analysts believe the U.S. government is content to see the dollar fall because it makes U.S. exports cheaper and can help export-dependent sectors of the economy. forbes.com