Dollar Rises Against the Euro, Yen in 2005, Gaining 15 Percent

http://quote.bloomberg.com/apps/news?pid=10000006&sid=ahZudO6Ozb.o&refer=home

Dec. 31 (Bloomberg) -- The dollar gained against the euro and yen in 2005, rising about 15 percent versus both currencies as the U.S. interest-rate gap widened with Europe and Japan.

The U.S. currency saw its biggest annual rally versus the euro since 1999, the year the 12-nation currency was introduced, and the first in four years. The Federal Reserve raised its target rate eight times while the European Central Bank lifted its key rate once and the Bank of Japan held rates at zero percent. The Fed has raised rates 13 times since mid-2004.

``The dollar is firmer this year because interest rates have moved more in the dollar's favor than anticipated earlier this year,'' said Daniel Katzive, a currency strategist in Stamford, Connecticut, at UBS AG. ``That's likely to be the case in the first quarter.''

The dollar rose to $1.1849 per euro at 5 p.m. in New York, up from $1.3554 at the end of last year, according to electronic foreign-exchange dealing system EBS. The dollar rose to 117.70 yen from 102.63 yen.

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dollar falls, then rises, the dollar goes UP, then the Dow goes DOWN, then the dollar goes IN and the dow goes OUT, everybody grab yer partner go round and round, swing that bootie UP and DOWN (sung to the tune of 'mary had a lil fuggin lamb etc)
what's the Plunge Protection Team been doing lately? Is it true that the PPT in effect cashes in billions of REAL dollars to fund its dealings? Then the bushviks prints billions to water down the value (they circulate, but not counted in the grand scheme)...the bushviks are nakedly criminal...does ANYONE ON EARTH THINK that they really have improved any economic measure? if so, i've got some 'grass' for sale (just mowed the lawn)...lol

.. about the economy. Your first paragraph made too much sense! You forgot the do-si-do factor, though.

No

to the Euro and Yen in 2004 as I remember.

How did they get a 15% increase out of this?

http://tinyurl.com/8g76u

states, like Ohio, so that they'd be less likely to vote D. So the rebound in 2005 was simply the dollar reaching natural levels.

Having said that, I still think the dollar is in trouble. Our deficits are too big, are imports are too low, our working class (the engine of economic growth) is too weak, our military spending is too high, our investments in the future are too low, and our interest rates aren't justified by real economic growth.

to grow. America is like that stock that has stopped growing fast enough for those who are looking for expanding markets (stocks). I think the corporate world has dumped us like a mature company's stock. The US is like Microstoft, big, dominant, corrupt, and boring. Asia is like Apple, growing, innovative, and exciting. Like MSFT, we are old news. We can still cause a ruckus in the market, but our prospects of going anywhere are dim.


Back on topic:

Weakening the dollar was also for midwest agri busines. Gotta keep Kansas and Iowa in the fold.

of DU were loudly proclaiming the imminent demise of the dollar exactly one year ago.

And it is absolutely hilarious that a blogger (who is for some unknown reason widely read here), posted a declaration of victory over the dollar, citing an already moldy (by months) Bloomberg story about Bill Gates betting against the dollar. This blogger's wrong-headed post (now revised by the blogger after some rather pointed comments, comments now expunged - with dubious explanation - from his blog, about its errors) was widely quoted on DU with heaping helpings of error and misunderstanding, as recently as October, when the dollar had already gained significant ground on the Euro and the Yen:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=104&topic_id=5107913&mesg_id=5107913

losing some ground to the dollar now.

eom

and the buck's still only at 0.844 EUR