Historic Strength for the Dollar

Less than one year after supermodel Gisele Bündchen started only accepting payment in Euros, the US Dollar is soaring today as financial troubles spread across the globe.  In addition to having its best day ever versus the Euro since that currency was introduced in 1999, the US Dollar index is also having its eighth best day since 1971. 

Comments

[Msrpaul:]

I'm amazed. With the twin trade and budget deficits, we continue to cund current liabilities with long term liabilities. Only because it's the world reserve currency and debts are paid off in such does it gain any strength. Long term, they will devalue it. They always do.

2008 Sep 30 07:49 PM

[User 265729:]

In this market... Here today, gone tomorrow... Hold on to your hats!

2008 Sep 30 08:46 PM

[USC-Col 200...:]

I believe that because of the current situation with the US the value of the dollar increased. Since the rejection of 700 billion dollar bailout, the US won't foot a debt bill with regards for paying for that particular package. We don't have to basically print more money to pay for the deal. Of course that is all that we are doing, when we raise the debt levels and don't use taxpayer dollars to lower. Our currency strengthens because it is actually worth more. I also believe that the FDIC's takeover banks who didn't know what their role as as banks, relative to the Fed and the consumers, helped maintain the US staus in the financial related. We were able to save the deposit and assets of millions of consumer while allowing lackluster banks to essentially fail. Thus we still have that money through deposits to prop our banking system up. Since other countries haven't done all they can yet to prevent the credit crunch from destroying their economies, our currency is currently holding its own versus all. Just my opinion, though, based on facts.

2008 Oct 01 12:17 AM

[phdinsuntan...:]

Gisele will prevail, fed is running out of ink and paper

2008 Oct 01 06:43 AM

[buyitcheap:]

With the fed dumping 630Billion on Europe, I fail to see how the dollar stays up, although looking at Giselle...

Rather, we will depress our own currency ultimately and the SWFs will buy everything in sight. I'm starting to believe the conspiracy theorists...

2008 Oct 01 08:18 AM

[Britishsteel:]

people vote against this bailout or you will be reduced to poverty not seen since the great depression, this was on kudlow tonite: 9/30/08

"Paulson and Bush threatened to veto the legislation if there was an explicit prohibition of transfers from foreign banks to an American subsidiary."

THE ASSETS DO NOT EVEN HAVE TO BE AMERICAN MORTGAGE ASSETS - THEY CAN BE AN OFFICE TOWER IN SHANGHAI!

YOU ARE GOING TO GET FLEECED FOR HUNDREDS OF BILLIONS OF DOLLARS IF THIS BILL PASSES - THAT MONEY IS GOING TO GO IMMEDIATELY OUT OF THE COUNTRY!




SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES AND CENTRAL BANKS.

The Secretary shall coordinate, as appropriate, with foreign financial authorities and central banks to work toward the establishment of similar programs by such authorities and central banks. To the extent that such foreign financial authorities or banks hold troubled assets as a result of extending financing to financial institutions that have failed or defaulted on such financing, such troubled assets qualify for purchase under section 101.


votenobailout.org/

2008 Oct 01 08:44 AM

[david02360:]

I was recently charged $270 for an overnight short dollar long Euro contract. Normally I receive cash based for this contract. The Fed has lost control over interest rates to such an extent that real dollar rates are higher than European rates. Hence the strength in the dollar. Add that to all the distressed Hedge Funds and Banks needing dollars it is no surprise that it has gained. When will it end, only when the central banks regain control.

2008 Oct 01 09:24 AM

[Coelacanth:]

Excellent work Bespoke.....hope you guys did well this morning getting long dollars vs. EUR, Cable & AUD.

2008 Oct 01 09:49 AM