debasing the currency? see these articles out from Bloomberg today:
"Dollar Drops on Concern Fed’s Stimulus May Undermine Currency "
http://www.bloomberg.com/apps/news?pid=20601087&sid=aKO4jPEV_iYY&refer=home
" March 18 (Bloomberg) -- The dollar declined to the weakest level in more than a month versus the euro as the Federal Reserve considered more measures to boost the economy, spurring speculation excessive money supply may debase the currency.
The greenback’s drop accelerated after breaking through $1.3070, near the top end of the euro’s trading range this month. The pound dropped to a seven-week low against the euro as a report showed unemployment in the U.K. rose in February at the fastest pace since at least 1971.
“The market is focused on how the Fed increases its balance sheet, buying more troubled assets,” said Jack Spitz, managing director of foreign exchange at National Bank of Canada in Toronto. “There’s a possibility the Fed is creating more risk tolerance at the expense of the dollar.”
(end quote ... click the link to read the full article)
AND THIS ONE:
"Dollar Sinks as Fed Says It Will Buy Longer-Term Treasuries"
March 18 (Bloomberg) -- The dollar fell against the euro as the Federal Reserve said it will purchase $300 billion of longer-term Treasuries, spurring speculation the central bank is debasing the currency.
...
“The dollar will trade with a weak bias,” said Lane Newman, director of currency trading at ING Financial Markets LLC in New York, before the Fed’s announcement.
The dollar depreciated 2.2 percent to $1.3303 per euro at 2:21 p.m. in New York, from $1.3017 yesterday. The dollar lost 1.7 percent to 96.95 yen from 98.60. The yen dropped 0.4 percent to 128.87 per euro from 128.35. "
....
Dollar Index
The Dollar Index, which the ICE uses to track the greenback’s performance against the currencies of six major U.S. trading partners, dropped 1.2 percent last week to 87.428, the biggest decline since mid-December. Speculation the worst of the global banking crisis may be over reduced the haven appeal of the greenback.
(end of quote, click the link to read the full article)
INTERESTING ... that second article was on Bloomberg's top page when I started writing this question. By the time I finished the question, it has "disappeared". Hmmm.
It was surprising to see it there in the first place. Did the censorship department over look it?
.
Surprise, surprise! (sarcasm).
Gold now rallying as the dollar takes a hit because of this. See this article hot off the press from Market Watch
"Gold rallies as dollar tumbles after Fed's decision "
http://www.marketwatch.com/news/story/gold-rallies-dollar-tumbles-after/story.aspx?guid={2D07948D-5835-4E62-A9F2-249D7504917B}
.
Some Quotes from the Market Watch article
"NEW YORK (MarketWatch) -- Gold futures rallied more than 4% in electronic trading Wednesday, as the dollar tumbled after the Federal Reserve surprised investors and said it will buy long-term Treasurys, which raised gold's appeal as an investment alternative.
…By buying Treasurys, the Fed is essentially creating more money to buy national debt, which weighs on the dollar.
…Gold rallied after the Fed decision "as dollar slid," …
…
At the end of a two-day meeting in mid-afternoon, the Fed said it was committed to buying $300 billion in longer-term Treasurys to help the struggling American economy recover. The central bank also tweaked its other credit-easing programs by committing to buy more mortgage-backed securities and agency debt and include more asset-backed securities under a new credit facility starting this week.
The dollar plunged after the decision, with the dollar index…
"Dollar Drops on Concern Fed’s Stimulus May Undermine Currency "
http://www.bloomberg.com/apps/news?pid=20601087&sid=aKO4jPEV_iYY&refer=home
" March 18 (Bloomberg) -- The dollar declined to the weakest level in more than a month versus the euro as the Federal Reserve considered more measures to boost the economy, spurring speculation excessive money supply may debase the currency.
The greenback’s drop accelerated after breaking through $1.3070, near the top end of the euro’s trading range this month. The pound dropped to a seven-week low against the euro as a report showed unemployment in the U.K. rose in February at the fastest pace since at least 1971.
“The market is focused on how the Fed increases its balance sheet, buying more troubled assets,” said Jack Spitz, managing director of foreign exchange at National Bank of Canada in Toronto. “There’s a possibility the Fed is creating more risk tolerance at the expense of the dollar.”
(end quote ... click the link to read the full article)
AND THIS ONE:
"Dollar Sinks as Fed Says It Will Buy Longer-Term Treasuries"
March 18 (Bloomberg) -- The dollar fell against the euro as the Federal Reserve said it will purchase $300 billion of longer-term Treasuries, spurring speculation the central bank is debasing the currency.
...
“The dollar will trade with a weak bias,” said Lane Newman, director of currency trading at ING Financial Markets LLC in New York, before the Fed’s announcement.
The dollar depreciated 2.2 percent to $1.3303 per euro at 2:21 p.m. in New York, from $1.3017 yesterday. The dollar lost 1.7 percent to 96.95 yen from 98.60. The yen dropped 0.4 percent to 128.87 per euro from 128.35. "
....
Dollar Index
The Dollar Index, which the ICE uses to track the greenback’s performance against the currencies of six major U.S. trading partners, dropped 1.2 percent last week to 87.428, the biggest decline since mid-December. Speculation the worst of the global banking crisis may be over reduced the haven appeal of the greenback.
(end of quote, click the link to read the full article)
INTERESTING ... that second article was on Bloomberg's top page when I started writing this question. By the time I finished the question, it has "disappeared". Hmmm.
It was surprising to see it there in the first place. Did the censorship department over look it?
.
Surprise, surprise! (sarcasm).
Gold now rallying as the dollar takes a hit because of this. See this article hot off the press from Market Watch
"Gold rallies as dollar tumbles after Fed's decision "
http://www.marketwatch.com/news/story/gold-rallies-dollar-tumbles-after/story.aspx?guid={2D07948D-5835-4E62-A9F2-249D7504917B}
.
Some Quotes from the Market Watch article
"NEW YORK (MarketWatch) -- Gold futures rallied more than 4% in electronic trading Wednesday, as the dollar tumbled after the Federal Reserve surprised investors and said it will buy long-term Treasurys, which raised gold's appeal as an investment alternative.
…By buying Treasurys, the Fed is essentially creating more money to buy national debt, which weighs on the dollar.
…Gold rallied after the Fed decision "as dollar slid," …
…
At the end of a two-day meeting in mid-afternoon, the Fed said it was committed to buying $300 billion in longer-term Treasurys to help the struggling American economy recover. The central bank also tweaked its other credit-easing programs by committing to buy more mortgage-backed securities and agency debt and include more asset-backed securities under a new credit facility starting this week.
The dollar plunged after the decision, with the dollar index…