Dollar Up Against Euro
Apr 15th, 2009 | By Doug Casey | Category: Financial NewsIn the currency market, the dollar gained ground vs. the euro. Late Tuesday, the euro was trading at $1.3285 vs. $1.3363 on Monday.
Analysts said that currency traders unwound their yen positions as the stock market fell, and retreated into dollars.
In addition to his upbeat comments on the economy, Bernanke said that the U.S. should make sure its currency stays strong. He noted that the U.S. dollar remains the dominant currency in the world, and he sees it remaining that way.
Among the day’s hard numbers, the Commerce Department said U.S. retail sales dropped a seasonally adjusted 1.1% in March, after two months of gains. That was much worse than the 0.3% gain projected by economists.
Separately, the Labor Department said that, following two consecutive months of gains in the producer-price index, it fell 1.2% in March, driven by a 5.5% decline in energy prices. Over the past 12 months, the PPI is down 3.5% — the largest 12-month decline since a drop of 3.9% in 1950.
“For some reason, people have gotten optimistic about short-term inflation but … the prospect of further price declines as we enter warmer months is very real and that prospect has not abated at all,” wrote Dan Greenhaus of the equity strategy group at Miller Tabak. “For now, producer prices continue to contract and as best as I can tell, they will continue to do so for the immediate future.”
Source: Dollar Up Against Euro
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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.