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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: The Street who wrote (5697)	10/8/1998 12:05:00 AM
From: DebtBomb	Respond to of 119973

US Dollar Wednesday October 7, 11:32 pm Eastern Time Mighty U.S. dollar has become "mortal" -analysts By Wayne Cole SYDNEY, Oct 8 (Reuters) - The high-flying dollar is falling to earth as financial market concerns turn from Japan to the health for the U.S. economy, and further declines against the yen are possible, analysts said on Wednesday. The U.S. dollar overnight suffered its biggest one day fall against the yen in 25 years, losing more than 11 yen to a 12-month trough of 118.90. Against the mark it fell to 1.6160/70 from 1.6290/00 on Tuesday. By mid-morning in Tokyo on Thursday it had recovered some ground to stand at 121.30/40. The collapse cleaved a major trendline bulwark stretching back to April 1995 when the dollar had been wallowing at 79.70 yen and with it went all thought of a recovery. ''We now have the beginnings of a serial bear market in the U.S. the dollar which will last many quarters if not years,'' Westpac market strategist Peter Pontikas told Reuters Television. ''People are going back to basics,'' said Tim Moloney, a currency analyst at Deutsche Bank here. ''They're scaling back the big bets, and the biggest of all was short yen-long dollar.'' The most aggressive gamblers had been hedge funds and traders said these led the selling splurge on Wednesday, dumping dollars for yen in amounts large enough to make the world shake. The swirl of rumours included one that beleaguered hedge fund LTCM had liquidated at least $10 billion of a dollar/yen position thought to total $35 billion. There was also talk the Bank of Japan may have played a part in the early selling which snapped critical support at 128.80 and even whispers that Federal Reserve had stepped in to support the U.S. currency, fearing a freefall. The currency was moving faster than market opinion since many analysts clung to their view of the last few years that fundamentals favoured the U.S. dollar over the yen, but some thought this outdated. ''The U.S. was so out there on its own, so clearly the leading economy in the world that everything was judged against it and found wanting,'' said Moloney. ''Now the world can no longer rely on the U.S. to be strong, the dollar has become a mere mortal again.'' Dollar sales accelerated as financial markets, still gripped by recent market turmoil spurred by Russia, Brazil and Asia, began to fear a sharp U.S. economic slowdown. Federal Reserve Chairman Alan Greenspan fuelled negative sentiment with hints of more rate cuts. The yen has also been supported by market perceptions that Japan is finally making progress on tackling its banking sector problems, the biggest obstacle to pulling the country out of recession. The ruling Liberal Democractic Party submitted a bill earlier this week to recapitalise the banks. ''Everything is relative and where before all the risks were for Japan, now the risks are for the U.S. economy and interest rates,'' Moloney said. With all the speculative flows in dollar/yen and emerging markets being stripped away, the market was returning its attention to underlying capital flows, and here again Japan had the advantage on the U.S. in the shape of its massive trade surplus, analysts said. Japan was running quarterly current account surpluses of over seven trillion yen, while the U.S. deficit in the June quarter was a record $56.5 billion. Indeed, with liquidity drying up around the world countries with trade deficits were finding it harder and harder to fund them, and that could now include the U.S.

To: The Street who wrote (5697)	10/8/1998 12:08:00 AM
From: DebtBomb	Read Replies (1) \| Respond to of 119973

I like the way you think, gold-bug. Talk me into buying some more.