It’s also possible that the Fed thinks a weak dollar will reduce America’s trade deficit, boost its export competitiveness, and lead to higher employment. We think this is a pipe dream. And we’re not talking about a lead pipe. We’re talking William Blake-style opium.
November 5th, 2009 | Dan Denning | 3 comments | ContinuedAll Posts Tagged With: "australian dollar"
US Dollar is Getting Trashed
“In other words, leveraged speculators are borrowing US dollars in the short-term money markets at near-zero rates to buy bonds in higher- yielding currencies like the Australian dollar or the euro.
September 29th, 2009 | Bill Bonner | 7 comments | Continued
Australian Dollar Set to Grow for the Remainder of 2008
The Australian dollar is as strong as it’s been since the beginning of the commodities boom. It takes just one dollar and five Australian cents to buy the greenback. The latest move probably comes as traders read the inflation tea leaves and do not see the Reserve Bank cutting rates this year. If the CPI data show official prices growing above the 3-4% range, then for the rest of 2008 the Australian dollar is going to enjoy a significant yield advantage.
April 23rd, 2008 | The Daily Reckoning | 6 comments | Continued