Dollar Slightly Higher Against Euro
Jan 26th, 2009 | By Doug Casey | Category: Financial NewsIn the currency market, the dollar edged higher against the euro. Late Friday, the euro was trading at $1.2977 vs. $1.3007 on Wednesday.
“The U.S. dollar and Japanese yen are higher against the major and most emerging currencies as they continue to benefit from the weak financial and economic environment and the ongoing deleveraging process,” wrote currency analysts at Brown Brothers Harriman.
The Brown Brothers analysts also cited “the probability that the relatively aggressive monetary and fiscal policy and the drop in oil prices will encourage an earlier recovery in the U.S.”
Across the pond, Britain continues to hit the skids. The pound changed hands at $1.3797, which was actually a rally off of its low of $1.3501, the lowest level against the dollar since 1985.
How badly the country is hurting was emphasized by an Office for National Statistics report saying U.K. gross domestic product contracted by 1.5% in the fourth quarter of 2008 compared with the third, marking the steepest quarterly drop since 1980.
That led Charles Davis, economist at the Center for Economic and Business Research, to comment that, “This supports our view that the [UK] economy is set for the steepest contraction in the post-war era in 2009.” Davis expects the year-on-year drop in GDP to be “in the region of 3%.”
Source: Dollar Slightly Higher Against Euro
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