the dollar

Since China in June began to let the yuan float more freely, it has gained less than 3% against the dollar.

But for the moment most factors seem to be favouring the dollar.

This last item would imply something of a challenge to the worthiness of the dollar as the leading global reserve currency.

'Parity with the dollar next year is not out of the question, ' he said in a phone interview Wednesday.

Analysts said the statement may slow the dollar's decline, but would not alter the currency's broad weakness.

China's signal that it is prepared to let its currency, the yuan, appreciate against the dollar is perhaps one of those moments.

And you know, when you give to a nonprofit, you might have 50 cents on the dollar.

S. devalued the dollar in 1933, he said, the prices of some commodities, which had been spiraling lower, suddenly began to go up.

The dollar started to gain against almost all currencies last summer when China decided to peg its currency to the US currency once more.

Markets responded immediately by driving down the value of the yen against the dollar, reversing almost a week of sharp increases.

In this way, the dollar has become a key currency, the United States can fully enjoy the privileges of Charles de Gaulle said the U.

Back in 1944, the United States was not prepared to subordinate the dollar to a global currency over which it would have little control.

First, it would only make sense if the currency were to be unpegged from the dollar, in which case the mercantilist strategy would collapse.

The dollar, which like the yen has recently been gaining against rival currencies, climbed against the euro and the British pound.

many others have been reluctant to let their exchange rates rise enough to make up for the dollar's decline.

Of course, it's been a while since there was any pressure on the yuan to weaken against the dollar.

THERE seems to be no floor for the dollar at the moment.

At this point it is hard to tell, but the recent strength of the dollar portends well for flows into the US.

Despite a bit of a rebound in recent weeks, the dollar is still off nearly 12 percent since Jan. 11, when it hit its peak for 2007.

Many people no longer expect the yuan to resume its appreciation against the dollar, at least not in the next few months.

Be prepared to pay a pretty penny if you take a trip to Europe. The dollar fell to another record low against the euro.

It may grumble about the dollar's dominance in the global trading system, but it has no desire to pull the rug from under America's economy.

The contention in Washington is often that the yuan is undervalued against the dollar by 40%.

The dollar value of deals in November and December is four times that of the same period a year ago.

Some analysts said the euro's 5. 7 percent drop against the dollar since the start of the year may be overdone.

The US is going to print the dollar to get out of the recession, and anything tangible, like industrial metals, is going to be worth more.

The dollar is only slightly weaker against the euro when compared to a year ago, just as the financial crisis hit full stride.

To that end, he said he thought Fed Chairman Ben Bernanke and Paulson were right to voice support for the dollar last week.

Showing off three expensive watches to his traveling companions, Preston said the dollar's woes have made his trip especially economical.

That will give the dollar exactly the sort of boost that investors do not need.

The case for defending the dollar as the nominal anchor of the international economy has therefore never been weaker.

Bernanke's plan seems to be to devalue the dollar against gold with huge monetary expansion, causing nominal equity values to rise.

The fear was that if these were to unwind rapidly, with confidence evaporating in the US economy and the dollar, the outcome would be grim.

Nearly everyone, however, seems to be bearish on the dollar over the long term.

If one were to draw the correct historical analogy, the potential eclipse of the dollar is just a decade away.

Currency analysts stated that such a revaluation could have stabilized the system but these nations said the dollar should be devalued.

The SDR , however, is more like an exchange -traded fund (ETF) than a currency, and is not a viable alternative to the dollar .

The dollar continued to take the brunt of investors' ire over the situation in the U.

For example, U. S. Treasurys would seem to be overvalued given the long-term problems in the U. S. budget and with the dollar.

They landed in traditional safe havens like the dollar and yen, which had lost ground to the franc this year as the U.

The meeting comes at a time when the dollar index is near its recent lows, thanks to the stumbles of the U.

Even the world's second-largest exporter might have to twist a few arms to upend the dollar's dominance in global trade.

As if all of the above weren't bleak enough, on top of that we have the very real possibility that the dollar will crash.

But the key to the dollar's weakness isn't just the yuan but the impact changes in its value seem to have on other currencies.

European stockmarkets have slumped and the euro itself fell to its lowest level in a year against the dollar.

Until recently, the dollar was one of the most robust currencies around, surging against everything except the Japanese yen.

But he said he was happy to wait, predicting that the dollar would fall further to $1. 45 to the euro by the end of the year.

The role for the dollar as an international means of exchange is entirely different from its role as a reserve currency.

First would be a renewed assault on the eurozone. That would force money out of the euro and into the dollar.

But what the dollar will buy, how much it will buy, does vary.

The euro has lost about 12 percent of its value against the dollar since the beginning of the year.

All of these factors seem to be trumped by the dollar's unique role as the world's reserve currency and provider of the most liquid markets.

Barclays Capital said the immediate effect of a downgrade should be supportive for the dollar.

He was also unable to quell concerns that the U. S. government is deliberately trying to weaken the dollar to boost exports.

The dollar's place as a reserve currency always seems to be questioned when it falls.

He admitted taking the dollar and said he was glad to get it off his chest.

The euro, which had been falling steadily against the dollar, perked up a bit.

Many other factors are at play, including just how much China lets its own currency appreciate against the dollar.

Thanks to its population growth and the dollar's role as a global currency, America has more fiscal room than any other big-deficit country.

The investment horizon of these entities tends to be long-term, and, as we have argued, over the longer-term the dollar should appreciate.

None of it right now adds up to a pretty picture for the euro, which is already down more than 6% this year against the dollar.

So far, so good, but the new investment policy would be severely constrained by China's desire to peg the renminbi to the dollar.

It was only a question of time before the desirability of the dollar as the dominant global reserve currency would be questioned.

Gold continued to gain after reaching record highs on Monday due to continuing concerns regarding the weakening of the dollar.

But Sakakibara said the yen is headed for further strengthening: to at least to 85 to the dollar, and likely into the low 80s.

How much further can the dollar plummet?

The dollar's slide also means that trying to set student fees in advance is a tiresome guessing game for college officials.

He said the bank believes the yuan will appreciate by around 6% against the dollar this year.

The growing conviction in the markets that the Fed might be preparing for a pause sent the dollar into a tailspin this week.

South Korean authorities intervened to prop up the won yesterday after the currency dropped to a two-and-a-half year low against the dollar.

On this, the United States' 40-year history of pressuring Japan to let the yen appreciate against the dollar is instructive.

He said Sudan would have to lower imports to reduce pressure on the Sudanese pound, which has tumbled against the dollar.

This was at a time when the dollar had been falling in value so fast that the monetary and banking systems were in a state of crisis.

Selling the dollar, buying emerging markets, or betting against subprime were all simple strategies that worked throughout the year.

When a currency goes into a fall like the dollar's recent plunge, the trend starts to feed on itself.

Kaufman said he did not expect the U. S. government to take any action to stabilize the dollar.

As it happened, the next day, May 12th, the dollar's broad trade-weighted index plunged to its lowest level since 1997.

Without a replacement in the near term, nothing will replace the dollar as the world's reserve currency in the next five years at least.

Any drop of more than about 5% a year in the dollar 'would be more of a problem for the economy than a plus, ' Mr.

If that changes now, then the dollar might continue to strengthen and gold might at least stop going straight up for a while.

Still, the slow opening of RMB trade seems to correspond with a desire to gradually loosen the renminbi's peg to the dollar.

The dollar's slide accelerated in the fall, when the U. S. appeared to be limping toward recovery, as other economies walked, or even ran.

In the best of times, the Treasury and the Federal Reserve pretended as if the dollar were America's currency alone.

Copper fell for the first time in a week in London trading as the dollar strengthened.

The euro, which had rallied strongly from mid-January through the end of April has lost more than 5% this month against the dollar.

I watched him dispense free advice a few years ago: Get out of the dollar, teach your children Chinese and buy commodities.

He said "The dollar is crashing and you're talking about these technicalities about who said what, when? "

Interestingly, Fan's excitement level seems to peak when he's asked why China is choosing to speak up now about the dollar.

But a weaker dollar need not push up prices elsewhere, as long as policymakers outside America do not try to follow the dollar down.

"A few more results like that" in sales of long-dated Treasuries "should not bode well for the dollar, " he said.

Financial markets did not react much to the data with yen moves swayed more by broad selling pressure on the dollar.

The dollar's losses also came in tandem with declines in gold, which is often used as hedge against high-risk events.

This, in turn, was one of the factors that contributed to the appreciation of the dollar relative to other major currencies.

But at least risk aversion will help the dollar avoid further falls, and delay the moment when it is replaced as a reserve currency.

But their financial centers, Tokyo and Frankfurt, never grew deep enough to rival New York and the dollar market in London.

On top of that, there have been wild swings in government bond yields, a jump in debt spreads and the continuing decline of the dollar.

"I think there's been a strong impact on costs as a result of the declining value of the dollar, " he said.

Minutes later he said he expected the dollar to be the reserve currency "for a long time" .

And even if the dollar were to tumble, the global nature of the recession might mean it would yield few benefits.

China seems to be seeking a balance in which the renminbi appreciates against the dollar, but only modestly.

But the US campaign was undermined by fears it was trying to push down the dollar by the Federal Reserve's return to quantitative easing.

Analysts said the G20 meeting, which will be hosted in South Korea on Thursday and Friday, will be the next catalyst in moving the dollar.

Further substantial weakness in the dollar over the long run would have major implications for the U. S. and global economies.

The slow rise of the yuan recently against the dollar is often cast as China's tacit capitulation to these pressures from abroad.

China's decision to prop up the dollar is not going to be affected by the size of the US budget deficit.

'On balance, we welcome the dollar to slide a bit against the yuan, ' said the executive.

The dollar's position is the result of powerful economic realities, not the decision of a room full of bureaucrats.

It estimates the company would get a 0. 7% bump up in profits for each 1% rise in the yuan against the dollar.

Of course, one might argue that this represents uncertainty over the dollar as much as the euro.

Even so, such a plan would be a marked shift and could signal a longer-term move away from the dollar.

(Germany is still singing a version of that song. ) But by holding fast to the dollar, Germany ended up importing America's laxity.

That's when Chinese officials began to allow the yuan to gain after keeping it stable against the dollar for two years.

"We'd rather take the risk, " he said, adding that the dollar "is declining all the time, so the risk is minimal. "

It said that only Indonesia, South Korea and India had currencies that appeared to be slightly over-valued against the dollar.

Central banks seem to have accepted the dollar's ongoing weakness, as long as shifts are not too fast and are broad-based.

It's not sure the dollar will keep its value as America borrows more than it might be able to pay back.

With the dollar likely to weaken against the renminbi over the medium term, the last thing Beijing wants to do is buy more US securities.

S. gold. In fact, one of the reasons President Nixon converted the dollar from money to a currency was to stop this hemorrhage of gold.

He said new ones will take a long time to emerge, but that "the main reserve currency, the dollar, has failed to serve its purpose. "

In fact, the decline was triggered by demand for the dollar from speculators trying to cover large short positions in that currency.

Its finance chief, Bodo Uebber, said the weakness of the dollar and pound against the euro also posed bad news.

Investors, fearing America will have to inflate its way out of such debt, could push the dollar down and interest rates up.

Carlos Denis, who trades in the Venezuelan mall alongside Ms. Martinez, insists that the dollar is still the only currency that matters.

The danger of a collapse of the dollar is small and of its replacement by another currency still smaller.

The more dollars the United States pushed into the system, the more doubt there would be about its ability to back the dollar with gold.

And what's the easiest way for an importing country like the U. S. to send the dollar exchange rate down?

Morgan Stanley's Wang said he expects the weakening of the Chinese currency against the dollar to be temporary.

"The dollar is the world's main reserve currency and settlement currency. This can be expressed as 'my dollar, your problem', " he said.

The IMF said the scrapping of the dollar peg would increase the central bank's flexibility to tighten monetary conditions.

The rest of the world normally wants a strong dollar. Yet the dollar is now in a bear market.

At the moment everything from the ethics of debt and the nature of capitalism to the continued dominance of the dollar is up for debate.

In a what-if scenario run for The Wall Street Journal, IHS Global Insight examined the likely effects of a further sharp drop in the dollar.

More generally, the dollar was the world's dominant currency for a century simply because it had no rival.

If China were to stop manipulating its currency, the dollar would decline against the renminbi, boosting U. S. exports and economic growth.

It noted, too, that in the only previous case of a fund breaking the buck, investors nevertheless were paid 96 cents on the dollar.

So far, to be sure, the dollar has held up better than expected because it is still a safe haven in a storm.

The U. S. may be facing the worst financial crisis since the Great Depression, but you wouldn't know it from watching the dollar.

The US cannot guarantee the dollar against a fall and would not wish to, even if it could.

The short answer yesterday was that they chose not to worry, pushing the dollar down through key levels.

If the dollar's dominance is to end, two or more currencies are likely to share the crown.

China has called persistently for a new form of composite currency to take over from the dollar as the main reserve asset.

"The euro is too strong today, " he said. "I don't think the dollar is in line with underlying fundamentals. "

"The Fed's Treasury purchases weighed on the dollar but failed to reverse the yield rally, " he said.

For a time that action depressed the dollar and made Chinese goods even cheaper in global markets.

A first step towards flexibility might be for China to peg the yuan to a basket of currencies rather than to the dollar.

A week before the Toronto meeting in July, China said it was abandoning its currency peg to the dollar, wrong-footing its critics again.

Ben Bernanke, Fed chairman, has defended his actions and said he was fully aware of the global importance of the dollar.

The analyst, who does not know more about the fundamental value of the dollar than the unsuspecting buyer, invents stories.

The dollar's value will also depend on the extent to which we see the return of a dynamic, innovative private sector economy.

Any dislodging of the dollar as reserve currency will likely happen gradually if it happens at all, analysts say.

The dollar had been under steady pressure over the last six weeks as weak U. S. economic reports fed fears that economic growth was slowing.

Over the next couple of years the dollar is likely to fall and bond yields rise as investors demand higher compensation for risk.

Triffin argued that this limited the dollar's ability to serve as an effective reserve currency.

In its founding days, the United States defined the dollar by an explicit weight of gold or silver.

A similar outlook holds for the yen, pegged by many analysts to be the only currency set to outperform the dollar in the near term.

The dollar is going to grind painfully lower over the next couple of years.

At the end of 1989, just before the crash, the dollar value of the Japanese market was almost twice that of the US.

Once again it was impossible to tell the difference between charts of the dollar and of the US stock market.

The current controlled exchange rate against the dollar has left the renminbi undervalued in terms of purchasing power parity.

Back in July 2008, shares and commodities were plunging while financial panic led to a rapid strengthening of the dollar.

If the world did eventually diversify its way out of the dollar, it would mean big changes for the United States.

Mr Marchionne said the weakness of the dollar against the euro compelled European companies to manufacture in the US.

The ringgit has risen by over 10% against the dollar since the beginning of the year.

"I believe the Chinese expect the dollar to be the principal reserve currency for a long period of time, as do we, " he said.

Although Mr Summers did not and could not say so, the vision will require an end to the remaining overvaluation of the dollar.

The depreciation of the dollar is weakening the price competitiveness of Korean products and the bottom line of exporters.

The falls in the dollar and Treasury yields have contrasted with a strong rally in share prices, powered by robust corporate earnings.

Since January, however, "everyone's retail-oriented. They want as many clicks for the dollar as possible, " he said.

It's as if the whole future of the dollar were threatened by fiscal problems in West Virginia.

By Monday, currency-derivative traders were betting the yuan will be 3% stronger against the dollar in a year's time.

Since the dollar is still the global reserve currency, Fed decisions affect investors all round the world.

But I do have a strong view that the dollar will appreciate over against the euro in over the next three years.

Advocates noted that the yen- dollar rate had not been so low since 1995 and that the dollar has fallen more than 20 per cent since 2002 .

As Ken Rogoff of Harvard University puts it, the Fed is "taking advantage of a respite in the financial crisis to shore up the dollar" .

China has been trying to gradually diversify its reserve holdings away from the dollar.

But it went on to allow a steady appreciation against the dollar for around three years, with no apparent reference to a basket.

The dollar fell to 160 from 240 yen over the next two years, but the current-account imbalance between the two countries was unaffected.

Japan felt additional pain as the yen continued to strengthen against the dollar, trading near 13-year highs.

problems swept through Europe, sending the euro to its lowest level against the dollar in two months and hurting share prices.

Rising equities were joined by surging commodities and sell-offs for government bonds and the dollar, as money came out of safe havens.

The ~ of the dollar can be directly linked to deterioration of the current account of the US balance of payments.

The smarter bet is to invest in assets that are likely to hold their value, or even increase in value, as the dollar continues its slide.

If you're worried this is going increase inflation and destroy the dollar, please reread everything we've said to this point.

The dollar's decline also seems to be fuelling commodities' rise.

Its recent decision to turn Shanghai into a financial centre by 2020 reflects China's anxiety over relying on the dollar system.

The stabilization in yields is lending some support to the pound, which has had a strong run recently especially versus the dollar.

New figures released yesterday indicate the weakness of the dollar has yet to impact on remittances, in dollar terms at least.

Why would a Brazilian exporter to China choose to be paid in renminbi, when the dollar is so much easier to trade and hedge against?

The value of the dollar compared to other leading world currencies has been a critical factor in U. S. manufacturing competitiveness.

The U. S. and other governments have long criticized Beijing for keeping the yuan's value low against the dollar to help its exporters.

But a debased dollar cannot be the explanation as the euro has fallen more against the dollar than the yen.

Our rough-and-ready Big Mac index calculated in July that the franc was as much as 98% overvalued against the dollar.

A reserve currency is supposed to be a store of value; by running a huge current-account deficit America has left the dollar vulnerable.

That in itself would lower global commodity inflation, since global commodities priced in dollars go up in price when the dollar falls.

Another worry Mr. Paulson had during the dark days of 2008 was 'a sudden decline in the dollar. '

They have prevented the yuan from appreciating against the dollar for over a year.

Don't you know -- I disagree with Lomax on this issue -- that the ballot is more important than the dollar?

The dollar is now at its weakest exchange rate against the Euro since the introduction of the single European currency in 1999.

One idea, Zhou said, was to replace the dollar with a basket of currencies supervised by the International Monetary Fund.

The paranoid wing of the Republican Party promptly warned of a dastardly plot to make America give up the dollar. But Mr.

Thus, major devaluation of the dollar would hurt China, as it would be left holding wads of worthless paper.

"Until that uncertainty is resolved, the upside for the dollar should remain limited, " he said.

It was adopted as a symbol for the Peso in the American colonies, and was transferred to the dollar.

Unlike other central banks, the Fed more than a year ago began lowering interest rates, which punished the dollar.

The dollar was, however, the biggest gainer; as the eurozone's woes increased, funds around the world flooded back to the haven of the US.

Printing more dollars, or cutting U. S. interest rates, tends to weaken the dollar and makes U. S. exports more attractive.

Although the financial crisis has given the dollar a lift owing to its haven status, the consensus is that this rebound will be short-lived.

London takes the No. 2 spot, up from No. 5 a year ago, thanks to higher rents and a stronger British pound relative to the dollar.

Higher rates tend to draw investment into a currency, all things being equal, thus boosting the dollar's prospects over the euro's.

A weak pound, especially against the dollar, is another near-certain consequence of the British economy's recessionary troubles.

In terms of the old gold measure, the dollar has devalued by 98% since the end of the Bretton Woods era.

Meanwhile, China has allowed the renminbi to rise by 2 per cent against the dollar since the beginning of last month.

But analysts say allowing a slow decline in the dollar isn't a policy to be feared unless the fall turns into a rout.

The dollar has gained strength, and the U. S. is back to its familiar position of lapping Europe and Japan in growth.

The euro is at new highs against the dollar and the yen. Unemployment has fallen to 7%, the lowest since the euro started life in 1999.

Has the dollar's decline since 2002 been a case of "beware what you wish for" ?

"What concerns me now is the continuous depreciation of the US dollar and when the dollar will hit bottom, " he said.

When the government gives a household a dollar back in taxes, the dollar might be saved, which does not add to aggregate demand.

Most major currencies started falling against the Dollar at the beginning of the Asian Session.

A year ago, most analysts agreed: the dollar could only go down against the euro and the other main currencies.

Several years of fixing the renminbi to the dollar has brought Beijing under sustained fire from Washington for undervaluing its currency.

Metals in London also rose after the dollar dropped, reducing the purchasing cost for holders of other currencies.

For some observers, the euro cannot challenge the dollar's hegemony as long as it remains a currency without a state.

In theory, Eichengreen insists, the renminbi's rise as a global currency is no less implausible than was the dollar's around 1920.

The bottom line for Beijing is that it does not want a declining euro any more than it wants rapid yuan appreciation against the dollar.

Despite signs of an export slowdown, many economists say China's currency, the renminbi, is still artificially low compared with the dollar.

But over the long haul the dollar tracks the strength of the economy, rather than monetary policy in isolation.

will reduce the par value per share by one-half, but it will not change the dollar balance of any account.

Part of the reason for the euro's rise against the dollar is the sense among some that the European economy will recover before the U. S.

For the moment, the dollar's decline is reflecting investors' expectations of Fed policy rather than tying the central bankers' hands.

The dollar fell against other major currencies, while gold prices continued to hover near record highs.

'The danger is of a disorderly adjustment, of investors losing confidence in the dollar, ' says Mr. Eichengreen, the Berkeley economist.

Last week, the bank cut its forecast for renminbi appreciation against the dollar to less than 2 per cent over 2012.

In other words, loyalty to the dollar and China's lack of the policy prerequisities seem to make the renminbi's rise a distant possibility.

He does not specify which US agency is implementing policies to weaken the dollar, but his words are likely to be seized on by Fed critics.

The top chart shows a strong positive relationship between the dollar price of a Big Mac and GDP per person.

Analysts said the dollar's performance next week depends on action in the euro.

The dollar is, for now at least, the world's reserve currency, meaning non-U. S. central banks will have to keep buying Treasurys.

A counterpart to this focus on sovereign risk has been a decline in the euro against the dollar.

Analysts expect an appreciation of the renminbi against the dollar within the next six months.

Alternatively, China could create a rival to the dollar if it let the yuan be used in transactions abroad.

You know, kind of what Wall Street did with the dollar.

By calling for a greater role for SDRs at the expense of the dollar, China seeks to reduce the political and financial power of the US.

The dollar is ready to collapse and China owns our debt. We disarm and they arm. Does anyone see how we're on a dangerous path?

BR: Mm-hm. Now, if this occurs, would this be a worldwide problem? I mean, like the collapse of the dollar. . .

The yen may be well known as Asia's best-performing currency against the dollar during the turmoil of the past three months.

The dollar has months of decline ahead of it, but the decline is likely to be relatively gentle.

Bearish bets on the dollar are hardly uncommon these days, but Monday's market response sure looks like an overreaction.

According to the World Bank, the dollar value of trade is about a third lower than it was a year ago.

Affected by this, the dollar rebounded blocked, the RMB exchange rate against the U. S. dollar remained slightly upward pattern.