Thursday, December 11, 2003

ITS OFFICIAL

The dollar now has the approximate buying power of a walnut.
The dollar enjoyed a measure of stability after breaking a run of nine consecutive days of record lows against the euro, as traders braced themselves for a fresh salvo of US economic data...

"The downward trend in the dollar appears to have temporarily stalled -- euro-dollar failed (on Wednesday) to record a new cycle high for the first time in the past nine trading days," said Steve Pearson, head of currency strategy at HBOS bank...

The plunging dollar has seemed impervious even to positive economic data, and traders were watching with interest for figures on US joblessness, retail sales and business inventories due later in the day.

When the Euro was established a couple of years ago one dollar bought one euro and 17 euro-cents.

Today one dollar buys 78 euro cents.

That is a decline in purchasing power of one third.

I don't shop downtown much these days...

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