Low dollar...

gheba_nsx

gheba_nsx

Legendary Member
Joined
23 October 2001
Messages
3,888
Location
Zürich, Switzerland
Isn't anybody else disturbed by such a low exchange rate of the US dollar against the other major currencies?

Today it touched 0.76 EUR (lowest ever? I think so) and 1.18 CHF (=Swiss Francs). Last time I was in the US, 3 years ago, it was 1.80 CHF, that is a decrease of over 45%.

Why am I worried? Several of my investments are in $ (=US stocks in my portfolio) and despite the good performance of the Stock Exchanges I am still in loss.

Ok, I just had to vent! :p

Please dollar, goes up! :D


ps: I could buy a NEW NSX there and have a big discount since the price where (still) not corrected for most imported goods in the US! ;)
 
Gheba, so you're one of the suckas...I mean "investors" of our economy. Thank goodness my 401k is diversified in global stocks.

J/K. :D Actually personally I haven't seen much impact from the recent drop in value of the US dollar, so I wouldn't know. Anybody else?

BTW a new Ikea just opened up today locally, our first one. Yay! :)
 
I buy stocks and funds composed with the World Top 500, so of course about 40% of them are US companies. :)

[funny enough 12% of these stocks are Swiss with a world population of 0.085%]

Anyway, you did not notice any change in prices? Probably not a lot of stuff is inported there, that could be the reason! :)


PS: we have an Ikea every 50 miles here... no-one cares anymore! the quality is crap anyway... ;)
 
The dollar would be even lower were it not for Asian countries buying our bonds to prop up the dollar. If the dollar falls any further the Fed will begin to aggressively raise rates. This will cause the housing bubble to burst which will cause the economy to possibly stall. Home equity is what has kept our economy afloat the past couple years. What we need is robust job growth. Growth has been here for the past few months, but we'll need to sustain it throughout 2005. Things are beginning to look better here, but the US economy is still fragile. A broken US economy means a broken world economy.
 
sabashioyaki said:
The dollar would be even lower were it not for Asian countries buying our bonds to prop up the dollar. If the dollar falls any further the Fed will begin to aggressively raise rates. This will cause the housing bubble to burst which will cause the economy to possibly stall. Home equity is what has kept our economy afloat the past couple years. What we need is robust job growth. Growth has been here for the past few months, but we'll need to sustain it throughout 2005. Things are beginning to look better here, but the US economy is still fragile. A broken US economy means a broken world economy.
Click to expand...

Well said.. I couldn't agree more.
 
gheba_nsx said:
Anyway, you did not notice any change in prices? Probably not a lot of stuff is inported there, that could be the reason! :)
Click to expand...
Only in gas prices. And sadly yes, like most everything else, it's imported. :(
gheba_nsx said:
PS: we have an Ikea every 50 miles here... no-one cares anymore! the quality is crap anyway... ;)
Click to expand...
It may be crap, but it's Swiss crap...which is better than the usual crap we get here. :D It's actually an event here, read all about it.
 
:p :p :p

Ikea is mostly a Swedish company, the foundr&owner lives since years in Switzerland, ...but aside this, it is interesting in seeing how something that is not available (even if not really special and of average quality) get the myth status when introduced.

It was the same with the Elise in the US and I am sure it would be the same with the Skyline here... :D
 
Not sure on how my stocks are looking because of the low US dollar..Got to look into it..as long as my stocks on the + side ... I am happy...

Just bought some stuff from the States off of ebay.. Cannot complain... prices are cheaper in the States even after shipping and customs. Low US dollar just makes it that much more attractive.....
 
The dollar exchange rate doesn't noticeably affect me, but my mother, who lives in Germany, but is pulling a pension in dollars, is getting hammered. Funny, they don't adjust pension payments for unfavorable exchange rates :)
 
WOO HOOOOO!!!

Time to buy some go-fast bits for the X!!!

Looks like it might be christmas.... Low USD = high AUD (relative to the USD of course)

Now all's I need is a property bubble bust so I can help some over committed people out of their mortgages and then rent their house back to them! :D
 
Canadian dollar OWNS :p ya it's pretty sweet for buying from the states, and even for our economy as in the short term the US buys 80% of our exports and they cannot find other suppliers at scale fast enough to avoid paing us higher prices for the same goods.

One of the contributing factors to our 7th year in a row of surplus budgets...going to be up about $10 Billion this year, with maybe half going to debt reduction.

Contrast that with the US surplus..no wait...massive deficit...ouch.
 
The value of the dollar is suppressed by the preponderous US national debt (now almost 4 TRILLION dollars), which is a weight on the entire global economy. Many major international banking houses, which buy and sell dollars daily, also are lenders to the Federal reserve...

Also, one contributing factor to price of gasoline rising relatively higher in the USA compared to other int'l currencies is because the global oil price is based on the value of the dollar... 2 years ago in Atlanta, avg gas price was about 1.17/gal. Today, avg is 1.85 gal, an increase of 63%, or 30%+ per year. Gheba, can you comment on how that compares in Euros or SF?
 
the nsxnut said:
The value of the dollar is suppressed by the preponderous US national debt (now almost 4 TRILLION dollars), which is a weight on the entire global economy. Many major international banking houses, which buy and sell dollars daily, also are lenders to the Federal reserve...

Also, one contributing factor to price of gasoline rising relatively higher in the USA compared to other int'l currencies is because the global oil price is based on the value of the dollar... 2 years ago in Atlanta, avg gas price was about 1.17/gal. Today, avg is 1.85 gal, an increase of 63%, or 30%+ per year. Gheba, can you comment on how that compares in Euros or SF?
Click to expand...


uhh...the US debt is over 7 TRILLION rising over 30% in the past 4 years http://www.brillig.com/debt_clock/


related articles
1. Administration pressures Congress to raise debt ceiling
2. Why Democrats Should Be Thankful -
At least they don't have to clean up the Bush fiscal catastrophe.
 
It sucks!!!!!
I work in the US and take my money back to Canada, with the exchange at its lowest point in 15 years my pay just got cut in half. :mad: :mad: :mad:
 
The US dollar is almost so low it's almost economical for all us Aussie's to fly over for the weekend to invade your NSXPO's and cruises! :D

<B>AU_NSX</B>: hahahaha.... yeah, i bet <B>Dippy</B> & <B>Nico</B> are pretty happy with the low US dollar... more mods for them.
 
the nsxnut said:
Also, one contributing factor to price of gasoline rising relatively higher in the USA compared to other int'l currencies is because the global oil price is based on the value of the dollar... 2 years ago in Atlanta, avg gas price was about 1.17/gal. Today, avg is 1.85 gal, an increase of 63%, or 30%+ per year. Gheba, can you comment on how that compares in Euros or SF?
Click to expand...

The price per barrel went from 51 CHF/barrel to 57 CHF/barrel in the last two years, an increase of 12% in total or 6% per year. This is of course because of the dollar depreciation that lost 32% in the last two years.
 
PS: I will change my holiday plans for Februray from south east Asia (Bali) to Caribbean probably... since there I use $$$ as payment mode! At least I can compensate part of the loss I am doing on the funds! :p
 
Im extremely disturbed by the low dollar. It has a ripple effect from low import purchasing power to investing (yes, even 401k divested globally) to home mortgages. This puts the fed in a VERY bad place to have to raise rates in order to keep or attract (mostly) foreign investors to buy the dollar (bonds). Since most home financing is variable rate, this will put many into a squeeze.
For companies that do business overseas, it simply adds more cost to do business, which makes them cut costs anywhere they can, or worse, move shop altogether.
I would say most Americans dont really care about a low dollar yet simply because it hasnt hurt the pocketbook, but a further slide will start to show effects through higher import costs and retail markups.
This can get nasty really quick!
 

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