NEW YORK (Reuters) - The dollar plunged to an all-time low against the euro on Wednesday ahead of an upcoming G20 finance ministers' meeting in Berlin, as analysts fretted that officials would do little to stem the greenback's fall.
A German government source said on Wednesday that G20 officials do not plan to issue a statement on currencies at talks starting from Friday.
Analysts were hoping that G20 finance ministers and central bank chiefs would exert pressure on China to let its yuan currency rise against the greenback. The yuan has been pegged at around 8.28 to the dollar since the mid-1990s, which has kept Chinese exports more competitive in the global trade market.
Friday's G20 gathering of rich and emerging market nations overshadowed the hefty rise in U.S. consumer prices for October, the surge in U.S. housing starts, and a jump in industrial production, analysts said, with the dollar showing little reaction to the generally positive U.S. economic data.
"The dollar is going to be driven by policy, what (Treasury Secretary John) Snow says, and what happens in the G20 meeting, more than U.S. economic data," said Larry Brickman, currency strategist at Bank of America in New York.
Snow, who was in London on a visit, poured cold water on any hopes of a weekend G20 accord to slow the U.S. currency's decline. He said the United States could not impose currency values, but countries could not devalue their way to prosperity. --------------------------------------------------------------------------------------------------------
"an all-time low", super...
Hmmmmmm, ya think maybe it has something to do with the insane amount of debt we have accumulated over the past 4 years?
A German government source said on Wednesday that G20 officials do not plan to issue a statement on currencies at talks starting from Friday.
Analysts were hoping that G20 finance ministers and central bank chiefs would exert pressure on China to let its yuan currency rise against the greenback. The yuan has been pegged at around 8.28 to the dollar since the mid-1990s, which has kept Chinese exports more competitive in the global trade market.
Friday's G20 gathering of rich and emerging market nations overshadowed the hefty rise in U.S. consumer prices for October, the surge in U.S. housing starts, and a jump in industrial production, analysts said, with the dollar showing little reaction to the generally positive U.S. economic data.
"The dollar is going to be driven by policy, what (Treasury Secretary John) Snow says, and what happens in the G20 meeting, more than U.S. economic data," said Larry Brickman, currency strategist at Bank of America in New York.
Snow, who was in London on a visit, poured cold water on any hopes of a weekend G20 accord to slow the U.S. currency's decline. He said the United States could not impose currency values, but countries could not devalue their way to prosperity. --------------------------------------------------------------------------------------------------------
"an all-time low", super...
Hmmmmmm, ya think maybe it has something to do with the insane amount of debt we have accumulated over the past 4 years?
