Friday, August 8, 2008.
The dollar rose against the Euro, oil prices continue to fall and pending homes sales increased int the United States. This good news has a black lining; the fear of recession.
The European economy which usually lags the US in growth and recession is now beginning to show signs of a slowdown. The dollar has traditionally been a good storm haven for wary investors and with gold prices currently in the stratosphere, we could see a flight to dollars as the world feels increasingly economically uneasy. On the other hand, the world markets are so easily spooked and it's hard to say what will happen from one day to the next.
TOKYO, Aug. 8 (AP) - (Kyodo)—The euro fell to a five-month low against the U.S. dollar and also dropped against the yen Friday in Tokyo on increasing pessimism about the eurozone economy fueled by cautious comments from European Central Bank President Jean-Claude Trichet on growth outlook.
The euro's fall against the dollar, as well as against the yen, led to increased confidence in the U.S. currency, pushing the dollar to a seven-month high at the upper 109 yen level.
At 5 p.m., the dollar was quoted at 109.84-85 yen against 109.39-49 yen in New York and 109.44-46 yen in Tokyo at 5 p.m. Thursday. It moved between 109.30 yen and 109.95 yen during the day, and most frequently traded at 109.60 yen.
The euro was quoted at $1.5166-5167 and 166.59-63 yen against Thursday's 5 p.m. quotes of $1.5320-5330 and 167.66-76 yen in New York and $1.5465-5467 and 169.26-30 yen in Tokyo.
The single European currency was the main driving force in Tokyo deals, dealers said.
The euro met heavy selling, apparently affected by the ECB's acknowledgement that the eurozone economy has been slowing, the dealers said.
Should The President have Scolded China?
Thursday, 7 August 2008
Just hours before flying to Beijing for the Olympics today, US President George Bush used some of his bluntest language yet in publicly pressing China to improve its human rights record.
In a speech in Bangkok on the eve of the Games' opening ceremony, when the eyes of the world will be on Beijing, Bush voiced "firm opposition" to China's detention of dissidents, human rights advocates and religious activists.
"The United States believes the people of China deserve the fundamental liberty that is the natural right of all human beings," he said in comments likely to anger China's communist leadership.
"We speak out for a free press, freedom of assembly, and labour rights not to antagonise China's leaders, but because trusting its people with greater freedom is the only way for China to develop its full potential," he said.