Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (27842)	2/7/1999 12:32:00 AM
From: Zardoz	Read Replies (2) \| Respond to of 116753

I think this is the link robert kalb refers to? CORRECTED - Goldman expert sees Aussie dollar surging in 1999 Please read in fourth paragraph...the fair value of the Australian dollar is still about 20 percent away from its current level...instead of...the fair value of the Australian dollar is still about 20 percent lower than its current level. A corrected version follows. NEW YORK, Feb 3 (Reuters) - The Australian dollar is undervalued and could emerge as the top performing currency of 1999, Goldman Sachs & Co., chief currency economist Jim O'Neill said on Wednesday. ''The Aussie dollar could turn out to be the star currency of 1999,'' O'Neill said at a Goldman Sachs foreign exchange conference here. Goldman predicts that the Australian dollar can rise from Wednesday's level of $0.6414 to around $0.70 in 12 months time. Based on Goldman Sachs's econometric model, the fair value of the Australian dollar is still about 20 percent away from its current level, O'Neill said. Regarding the U.S. dollar, O'Neill said, there was a serious risk that it could fall sharply in 1999 if anything disturbs the trend of recent years which has seen vast movement of international capital into the United States. ''There is a serious risk the (dollar) could (collapse) in 1999,'' O'Neill said. O'Neill said not only does this risk stem from chances that U.S. economic growth will slow relative to other countries, ''It is what may happen (as a result of) a serious interruption of those flows.'' Goldman also forecast that the euro will rise to $1.29 over a 12-month horizon from its current $1.1334. The firm forecasts dollar/yen will fall to 103 from around 112.87 currently. O'Neill said current predictions that the yen will weaken dramatically, as Tokyo is expected to start increasing its supply of yen to boosts its economy, could lead to trouble. ''To make a view based on something as dramatic as monetization happening is highly, highly, dangerous,'' O'Neill said. biz.yahoo.com