Friday, December 01, 2006


More Bad Economic News For The US$

The Associated Press reports on the US dollar. "The dollar fell against other major currencies Friday after disappointing economic news, capping off a week of sharp declines against the euro and pound. The euro bought $1.3335 in afternoon New York trading, up from $1.3250 late Thursday in New York. Earlier in trading, the 12-nation currency hit another 20-month high of $1.3348 this week and is moving closer to its all-time high of $1.3667, set in December 2004."

"The British pound rose to its highest level against the dollar since September 1992. It hit $1.9805 in New York trading, up from $1.9661. The dollar also weakened against the Japanese currency, falling 115.35 yen from 115.75 the day before."

"The Commerce Department dealt the first blow against the dollar when it reported that construction activity in October dropped 1 percent, the largest amount since the recession in 2001. Home building fell for a record seventh consecutive month."

"In other trading, the dollar bought 1.1928 Swiss francs, down from 1.1982 late Thursday, and 1.1451 Canadian dollars, up from 1.1420."

From MarketWatch. "Gold futures fell Friday, but prices still ended the week nearly 3% higher as weak U.S. economic figures implied a slowdown in the growth of the economy. 'The fact that the yellow metal is inaugurating December at current levels (overbought or not) is in itself an accomplishment that was not looking likely back in August,' said Jon Nadler, analyst at bullion dealers"

"'That such a climb was almost entirely dollar-induced remains fairly clear, and we still wish we had seen added bullishness on the part of jewelry buyers and private investors as a component of this rally,' he added."

"Gold for February delivery closed down $2.30 at $650.60 an ounce on the New York Mercantile Exchange. The contract finished $16.20, or 2.5%, above last Friday's closing level of $635.40."

"Most other metals declined, with the exception of silver, whose March contract climbed 7.5 cents to close at $14.19 after briefly touching a low of $14.03. It's closed 7.2% above last week's close."

"January platinum ended down $22.20 at $1,154.50 an ounce and March palladium lost $1.60 to finish at $332.75 an ounce, with both scoring slight gains from last Friday's close."

It wasn't that long ago the dollar could do no wrong.
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