Reply #50: Dollar Extends Weekly Losses As Debt Deadline Looms [View All]

WASHINGTON (dpa-AFX) - The dollar was hammered on Friday, as a dreadful second quarter GDP report signaled that the U.S. has major problems beyond the debt ceiling crisis playing out in the nation's capital.

Record lows were reached against a number of counterparts, most notably the safe haven Swiss franc, and the dollar dropped toward an all-time low versus the yen set back in March.

The U.S. economy grew at a slower rate than expected in the second quarter, due in large part to sluggish consumer spending. In addition, revised statistics showed that first-quarter growth was slower than people had previously thought.

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The buck slipped to a record low CHF 0.7876 versus the Swiss franc. Early losses took the buck to a 4-month low of Y77.03 versus the yen, near the March record low of Y76.30.

/... http://www.finanznachrichten.de/nachrichten-2011-07/20937080-dollar-extends-weekly-losses-as-debt-deadline-looms-020.htm




Debt Uncertainty, Weak Economy Sends Gold To New Heights

WASHINGTON (dpa-AFX) - Gold hit record highs on Friday on demand for an investment heaven amid mounting concerns over the U.S. debt impasse. Friday morning's weaker than expected U.S. GDP report also added to the upside movement of gold.

Gold futures for December delivery added $15.00, to $1,631.20 on the Comex in New York. Earlier it rose to a new all time record high of $1,634.90 an ounce. The metal, up 8.1 percent in July, headed for the fourth straight weekly advance.

Focus was also on looming debt limit catastrophe as increasingly nervous traders and investors watch with uncertainty the approaching government's default deadline of August 2. Meanwhile Republican leaders clambered to rescue their budget deficit cutting plan after conservatives mounted a rebellion adding further chaos to the drama.

Ratings agencies Moody's, Standard & Poor's and Fitch's have threatened to cut the U.S.'s triple A rating rating in the event that a failure to raise the debt ceiling results in a default or the deal fails to take into account longer term spending and tax issues.

Downbeat economic data also added to gold's appeal. Gross domestic product in the U.S. rose less than expected in the last quarter, preliminary official data showed on Friday.

/... http://www.finanznachrichten.de/nachrichten-2011-07/20937487-debt-uncertainty-weak-economy-sends-gold-to-new-heights-020.htm