Dollar Falls Against Major Currencies

June 14, 2006

NEW YORK (AP) - The dollar fell against most major currencies Wednesday, even after Washington reported another sizable increase in consumer inflation, which may prompt the Federal Reserve to raise interest rates again.

In afternoon New York trading, the 12-nation euro bought $1.2602, up from $1.2541 late Tuesday in New York. The British pound rose to $1.8431 from $1.8335.

The dollar also slid against the Japanese currency, falling to 114.99 yen from 115.27 in New York.

"We've seen a pretty significant correction in the last two weeks," said David Gilmore, a partner at Foreign Exchange Analytics, referring to the dollar's recent rally. "Now the market is finding a better balance since it's expecting the Fed to hike rates one to two more times."

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http://www.lasvegassun.com/sunbin/stories/invest-corp/2006/jun/14/061408956.html

just look at what the super wealthy have done to America. And guess who is going to fix it all? I say we FORCE them to pay.

The euro was 20 cents on the dollar higher last December when I went to Sicily. Now what will it be by November of this year?

This is sad. I want so much to visit my beloved bella italia.

The dollar fell against most major currencies Wednesday, even after Washington reported another sizable increase in consumer inflation, which may prompt the Federal Reserve to raise interest rates again.

Isn't that what you would expect?

Because they expect the FED to raise rates once the Washington admits it's got an inflation problem. Raising the rates means the FED will borrow up some dollars making them scarcer and hence more valuable.

It's funny how sometimes the market reacts in the opposite dirrection to what you'd expect because they expect the FED to counteract it.