European Tribune - Comments - Wednesday Open Thread

Wednesday Open Thread | 124 comments (124 topical, 0 editorial, 0 hidden)

Does anyone have any idea as to why the dollar got so strong as the stock markets tanked (and then fell on the days the markets recovered)? For the past few weeks it seems that the USD/EUR has been moving in step with the markets.

by dahuk (dahuk . hiddenborder @ com) on Wed Oct 15th, 2008 at 12:04:53 PM EST

Re: USD (none / 1)

I'm no currency guru but I suspect it was a mismatch in the bailout timings.

The dollar got stronger cos the US bailout happened first, so the euro hesitated a bit, then when the eurpopeans got their act together their currency responded to a more credible plan, causing the dollar to go backwards.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Wed Oct 15th, 2008 at 12:15:55 PM EST
[ Parent ]

Re: USD (4.00 / 4)

Banks needed liquidity, so they needed dollars, so they bought them...

Un roi sans divertissement est un homme plein de misères

by linca (antonin POINT lucas AROBASE gmail.com) on Wed Oct 15th, 2008 at 12:24:00 PM EST
[ Parent ]

Re: USD (4.00 / 3)

I seem to recall reading somewhere that this is a side effect of all the deleveraging. The banks are calling in their loans to each other, and internationally most of these are denominated in dollars. Once that cycle runs out, I imagine the € will start climbing again.

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman

by dvx (dvx.clt ät gmail dotcom) on Wed Oct 15th, 2008 at 03:11:32 PM EST
[ Parent ]

Wednesday Open Thread | 124 comments (124 topical, 0 editorial, 0 hidden)

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