Dollar Slides Again
Apr 27th, 2009 | By Doug Casey | Category: US Dollar & Forex TradingIn the currency market, the dollar fell again against the euro. Late Friday, the euro was trading at $1.3247 vs. $1.3145 on Thursday.
Analysts attributed the continuing weakness to anxiety among traders over what finance ministers and central bankers from the Group of Seven nations gathering in Washington may say regarding their countries’ reserves.
Officials from the G7 met yesterday afternoon ahead of the weekend spring meetings of the IMF and World Bank. The G7 gathering will be followed by a meeting of the broader G20, which includes China and other powerful emerging economies.
At issue will be discussions with Chinese officials over calls by China’s central bank chief for replacement of the U.S. dollar as the world’s premier reserve currency by IMF special drawing rights.
The day’s hard numbers came in weak. The Commerce Department reported that durable goods orders fell 0.8% in March, marking the seventh decline in the past eight months.
Inventories fell 1.1%, a sign that manufacturers are bringing supplies of unsold goods in line with demand. But shipments fell faster than inventories did, suggesting that production will need to be reduced further.
Separately, Commerce reported that new home sales fell 0.6% in March, but added that sales in the first two months of the year were stronger than initially reported.
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.