Breaking News: Dollar Down

FRANKFURT, Sept. 20 — Investors around the world rushed to sell dollars today, pushing it to an all-time low of $1.40 against the euro and to parity with the Canadian dollar for the first time in three decades as currency traders digested the full implications of the Federal Reserve’s new course for interest rates.
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Via:  The New York Times

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18 thoughts on “Breaking News: Dollar Down

  1. This has been happening for the past four years. What has surprised me is the Canadian dollar parity. I have bought my hardwoods from Canada because the ratio of the $ to the Canadian dollar gave me a discount advantage of about 20% (shipping included). Now the prices from up there after conversion and shipping are significantly higher.

  2. They had to see this coming when the Fed dropped the rate by 50 points. Yet every article that predicted & then applauded the drop failed to even consider the effect would have on the US$.

  3. but what does this mean? to me and mine?
    are my 5k CDs safe? i have nothing in stocks any more, or bonds…
    what does this mean?

  4. WaltTheMan

    The parity with the Canadian dollar really surprises me also. I grew up outside Buffalo, NY and remember the US dollar fetching 135% of the Canadian dollar. Amazing. Let’s hope China doesn’t call in their loans.

  5. The US$ was $1.62 Cdn in January 2002. I remember it well.

    katy, it means nothing to your CDs. Your $ just won’t buy as much as it used to. If you don’t leave the country it won’t be as obvious but everything that is imported into the U.S. will be more expensive then it was previously. One reason that the price of oil is going up is that it’s valued in US$. When that stops being the unit of measure & they switch to the Euro you’ll find fewer countries willing to hold US$. That will be the big hit on your currency.

  6. The Canadian and US dollar being at par is quite amazing. Consider that on January 2007, thats 9.5 months ago, one Canadian Dollar bought eighty six cents US Dollar. That’s $1.00 = $0.86!!!!!!!!!!

    That’s one hell of a jump. Can you guess what the conversion was on Jan. 1, 2006??………….. Ok, I’ll tell you: $1.00 Cdn = $0.86 US!!!

    Jan. 1 2005 : $1.00 Cdn = $0.83 US
    Jan. 1 2004 : $1.00 Cdn = $0.78 US
    Jan. 1 2003 : $1.00 Cdn = $0.64 US
    Jan. 1 2002 : $1.00 Cdn = $0.63 US
    Jan. 1 2001 : $1.00 Cdn = $0.67 US
    Jan. 1 2000 : $1.00 Cdn = $0.69 US

    Ok you get the picture. So in five years it has gone from .64 to 1 that’s what, a 36% gain? A little less than half of that gain has been in the last 9 months.

    Perhaps Bush has been good for Canada after all? Just kidding. It appears that the Canadian Dollar is stronger than the US dollar at this point in time. In fact the Canadian dollar has gained about 20% on the Pound AND the Euro in the same 5 year period.

    Very interesting times indeed.

    And now, the Alberta government is faced with a report that shows that they should be charging upwards of 20% more for royalties from oil companies!!!

    Very interesting times indeed.

    Now if only my wife and I could find a decent hotel in Manhattan for 7 days, we may get their again soon. Two and half years ago we stayed at the Beekman for $150 Cdn. Six months ago, we stayed in the same place and same room type for $300 Cdn. Checking lately, for Feb 2008, the same room is now $600 Cdn. $300 ok but $600!!!!!! Ouch.

  7. I’m so glad I got out of the market for good last Friday. I made money in the 7 years I was in the market, but it’s been looking shaky, so I cashed out. Since interest rates will likely be going up, I’ll buy a few CDs.

    Grat post, Shayne!

  8. Heh. Neither a borrower nor a lender be. I love Shakespere. 😉

    Certificates of Deposit, dbadass. Heh. A craven thing, I admit it. Taking advantage of the higher interest rates, the collapse of the economy will bring. I can’t help myself. Please don’t hate me!

  9. I hope you did well. I forget the name of the company but they control the lion share of the mortuary business in the country and their stock is pretty much recession proof what with the nature of the death industry. Maybe you should not put all those new eggs only into the CD basket. And I was only kidding about Cheap Trick.

  10. thanks, dave…

    zoo – i thought the interest rates were just lowered… i hurried to get a couple of CDs at 5ish% last week, before rates were lowered…

    i’ll have another chance next month, to roll one over or cash it out…

    these things make me nervous… and make my head hurt… :-]

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