Dollar drops on reserves concerns
Feb 22nd 2005 | 4:02 pm
#1
Guest
Posts: n/a
Dollar drops on reserves concerns
The US dollar drops against major currencies on concerns that central
banks will cut the amount of dollars they hold in their foreign reserves.
.....
http://news.bbc.co.uk/2/hi/business/default.stm
banks will cut the amount of dollars they hold in their foreign reserves.
.....
http://news.bbc.co.uk/2/hi/business/default.stm
Feb 22nd 2005 | 7:51 pm
#2
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Posts: n/a
Re: Dollar drops on reserves concerns
On 23/02/05 6:02, in article
[email protected] et, "Pete"
<[email protected]> wrote:
> The US dollar drops against major currencies on concerns that central
> banks will cut the amount of dollars they hold in their foreign reserves.
> .....
> http://news.bbc.co.uk/2/hi/business/default.stm
The stock markets were also hit, partly by the rise in oil prices.
Earl
[email protected] et, "Pete"
<[email protected]> wrote:
> The US dollar drops against major currencies on concerns that central
> banks will cut the amount of dollars they hold in their foreign reserves.
> .....
> http://news.bbc.co.uk/2/hi/business/default.stm
The stock markets were also hit, partly by the rise in oil prices.
Earl
Feb 22nd 2005 | 8:01 pm
#3
Guest
Posts: n/a
Re: Dollar drops on reserves concerns
On Wed, 23 Feb 2005 05:02:44 GMT, "Pete" <[email protected]> wrote:
>The US dollar drops against major currencies on concerns that central
>banks will cut the amount of dollars they hold in their foreign reserves.
>.....
>http://news.bbc.co.uk/2/hi/business/default.stm
I think this is the link you wanted.
http://news.bbc.co.uk/2/hi/business/4287413.stm
...and here's a graph telling the story...
http://www.x-rates.com/d/EUR/USD/graph120.html
Dollar drops on reserves concerns
Recent rebounds in the dollar have proved to be short lived
The US dollar has dropped against major currencies on concerns that
central banks may cut the amount of dollars they hold in their foreign
reserves.
Comments by South Korea's central bank at the end of last week have
sparked the recent round of dollar declines.
South Korea, which has about $200bn in foreign reserves, said it plans
instead to boost holdings of currencies such as the Australian and
Canadian dollar.
Analysts reckon that other nations may follow suit and now ditch the
dollar.
Concerns over the dollar's outlook, and rising oil prices pushed down
US shares on Tuesday. The Dow Jones industrial average closed down
1.6%, while the Nasdaq lost 1.3%.
At 1930 GMT, one euro was worth $1.325, up 1.46% on the day.
The British pound had added 0.76% to reach $1.91, while the dollar had
fallen by 1.25% against the Japanese yen to trade at 104.2 yen.
Change in mood
At the start of the year, the US currency, which had lost 7% against
the euro in the final three months of 2004 and had fallen to record
lows, staged something of a recovery.
The comments from Korea come at a time when sentiment towards the
dollar was already softening
Ian Gunner, Mellon Financial
Analysts, however, pointed to the dollar's inability recently to
extend that rally despite positive economic and corporate data, and
highlighted the fact that many of the US's economic problems had not
disappeared.
The focus once again has been on the country's massive trade and
budget deficits, with predictions of more dollar weakness to come.
"The comments from Korea came at a time when sentiment towards the
dollar was already softening," said Ian Gunner, a trader at Mellon
Financial.
On Tuesday, traders in Asia said that both South Korea and Taiwan had
withdrawn their bids to buy dollars at the start of the session.
Mansoor Mohi-Uddin, chief currency strategist at UBS, said that there
was a sentiment in the market that "central banks from Asia and the
Middle East are buying euros".
A report last month already showed that the dollar was losing its
allure as a currency that offered rock-steady returns and stability.
Compiled by Central Banking Publications and sponsored by the UK's
Royal Bank of Scotland, the survey found 39 nations out of 65
questioned were increasing their euro holdings, with 29 cutting back
on the US dollar.
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DFM - http://www.deepfriedmars.com
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>The US dollar drops against major currencies on concerns that central
>banks will cut the amount of dollars they hold in their foreign reserves.
>.....
>http://news.bbc.co.uk/2/hi/business/default.stm
I think this is the link you wanted.
http://news.bbc.co.uk/2/hi/business/4287413.stm
...and here's a graph telling the story...
http://www.x-rates.com/d/EUR/USD/graph120.html
Dollar drops on reserves concerns
Recent rebounds in the dollar have proved to be short lived
The US dollar has dropped against major currencies on concerns that
central banks may cut the amount of dollars they hold in their foreign
reserves.
Comments by South Korea's central bank at the end of last week have
sparked the recent round of dollar declines.
South Korea, which has about $200bn in foreign reserves, said it plans
instead to boost holdings of currencies such as the Australian and
Canadian dollar.
Analysts reckon that other nations may follow suit and now ditch the
dollar.
Concerns over the dollar's outlook, and rising oil prices pushed down
US shares on Tuesday. The Dow Jones industrial average closed down
1.6%, while the Nasdaq lost 1.3%.
At 1930 GMT, one euro was worth $1.325, up 1.46% on the day.
The British pound had added 0.76% to reach $1.91, while the dollar had
fallen by 1.25% against the Japanese yen to trade at 104.2 yen.
Change in mood
At the start of the year, the US currency, which had lost 7% against
the euro in the final three months of 2004 and had fallen to record
lows, staged something of a recovery.
The comments from Korea come at a time when sentiment towards the
dollar was already softening
Ian Gunner, Mellon Financial
Analysts, however, pointed to the dollar's inability recently to
extend that rally despite positive economic and corporate data, and
highlighted the fact that many of the US's economic problems had not
disappeared.
The focus once again has been on the country's massive trade and
budget deficits, with predictions of more dollar weakness to come.
"The comments from Korea came at a time when sentiment towards the
dollar was already softening," said Ian Gunner, a trader at Mellon
Financial.
On Tuesday, traders in Asia said that both South Korea and Taiwan had
withdrawn their bids to buy dollars at the start of the session.
Mansoor Mohi-Uddin, chief currency strategist at UBS, said that there
was a sentiment in the market that "central banks from Asia and the
Middle East are buying euros".
A report last month already showed that the dollar was losing its
allure as a currency that offered rock-steady returns and stability.
Compiled by Central Banking Publications and sponsored by the UK's
Royal Bank of Scotland, the survey found 39 nations out of 65
questioned were increasing their euro holdings, with 29 cutting back
on the US dollar.
--
---
DFM - http://www.deepfriedmars.com
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