NickelBack

The U.S. dollar hit an all-time low against the euro Friday, shrugging off positive U.S. employment data and falling on worries about oil prices and concern over the U.S. budget deficit.

The dollar had rallied a bit earlier in the day, with the euro briefly dropping below $1.28 after the U.S. Labor Department reported that employers aggressively hired new workers in October, adding 337,000 people to their payrolls.

But the U.S. currency resumed its downward trend, and later in the day the euro reached a new high of $1.2950. It had reached its previous peak of $1.2927 in February.

Oil prices, which remain relatively high despite a more than 10 percent pullback in recent days, have raised doubts about the strength of the U.S. economy, adding new concerns on top of high U.S. trade and budget deficits, factors that have weighed on the dollar for months.

Economists say sentiment has turned so strongly against the dollar that positive news about the U.S. economy has little impact on its slide.

Dorothea Huttanus, an economist at DZ Bank in Frankfurt cited "global skepticism about the U.S. economy because of oil prices" and persistent concern over the U.S. deficits. She noted that although the labor market figures were "outstanding," they only boosted the dollar for about an hour.

http://news.yahoo.com/news?tmpl=stor..._ge/euro_rally

CaptTurbo

The pound outvalues the dollar why would the euro after so much time?

I mean how many countries contribute to its value? pretty hard to beat. The Euro will pass the pound in a long enough timeline.

NickelBack

So France and Germany are overtaking us as an "economic superr-power"?

CaptTurbo

oh 2 countries contribute to the Euro?


Wow thats news to me. i must live in a cave.

NickelBack

I didn't think you would answer the question.

Actually, the correct answer is, this deficit is hanging over our collective heads and has the potential to cause real problems for us if it isn't dealt with.

CaptTurbo

Answer to the question simple. The european economy as a whole (which is who contributes to the euro) will over take us yes. Individually. No.

NickelBack

Normally I would think that our economy would be much stronger than the Euros. Their governmental policies/interventions tend to drag the economy down.

Sadly, our unwillingness to even admit the huge deficit is a problem means that you are right in saying that the Euros economy may over take ours....at the very least it will continue to crush the dollar.

justAndy

We are no longer the economic superpower - that's why we're thrrowing our weight around militarily.

DjaugheOld

The euro is nothing to sneeze at. Most economists predicted that if they get their organization straightened out their economy would rival ours.

In fact there has been discussions for the past 5 years in replacing the "dollar" when gauging oil prices with the "euro." If that happens then surely that'll be a sign how much times have changed.

NickelBack

And won't be anytime soon with the debit burden we continue to willingly acccept.