Patriot Radio News Hour - 3/20/2008 : Don’t Panic ! pt 1
http://www.allamericangold.com/
Dollar Rises Against Euro, Yen as Oil, Commodity Prices Decline
By Agnes Lovasz
March 20 (Bloomberg) — The dollar rose to its strongest in a week against the euro as speculation a global economic slowdown will reduce demand for raw materials pushed gold and oil lower.
The European common currency declined after Credit Suisse Group said it may have a loss this quarter because of writedowns on debt securities. The dollar climbed to the highest level in more than a week versus the currencies of its major trade partners as crude dropped after a U.S. government report showed weaker demand for fuel.
“The main driver is the liquidation of long commodity positions, specifically crude oil,” said Lee Hardman, a currency strategist in London at Bank of Tokyo-Mitsubishi UFJ Ltd. “That’s potentially been a positive for the dollar on the back of the drop in commodity prices.”
The dollar advanced to $1.5451 per euro as of 11:01 a.m. in London, the strongest since March 12, from $1.5626 yesterday in New York. It gained 1 percent to 99.85 yen, from 99.03 yesterday. The European common currency traded at 154.32 from 154.80.
The U.S. Dollar Index traded on ICE Futures in New York, which compares the currency to those of six trading partners, rose for a third day, to 72.441, the highest since March 12, from 72.144 yesterday. The gauge fell to a record 70.698 on March 17, when the dollar slumped to $1.5903 per euro, the lowest level since the European currency’s debut in 1999.
The euro also weakened after a report showed today growth in Europe’s service and manufacturing industries slowed more than economists forecast.
Slower Growth
A preliminary estimate of Royal Bank of Scotland Group Plc’s composite index fell to 51.9 in March from 52.8 in February, Reuters Plc reported. Economists expected 52.4, according to the median of 14 forecasts in a Bloomberg News survey. A reading above 50 indicates expansion.
The 15-nation euro declined after European Central Bank council members Yves Mersch and Guy Quaden said yesterday financial-market turbulence caused by the U.S. housing slump will last longer than expected, weighing on Europe’s economy.
Writedowns of $2.65 billion, which were deliberately mispriced by traders, will be spread over the fourth quarter and first three months of 2008, Zurich-based Credit Suisse Group said today in an e-mailed statement.
Gold headed for its biggest weekly drop in 25 years, plunging 12 percent from its record $1,032.70 an ounce. Oil fell below $100 a barrel for the first time since March 5, and copper had its biggest two-day decline in seven months.
Author: johnnyLiberty1776
Keywords: Partiot Radio News Hour Bear Sterns JPMorgan NY Fed Wall Street economy inflation Gold
Added: March 20, 2008
