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Surely it's also the Euro crisis.

There's a sense that the US crisis is done with for now. S&P downrated, but the others won't - so the dollar is a safe haven - and there's a lot of money trying to get out of the Eurozone before it crumples...

by Metatone (metatone [a|t] gmail (dot) com) on Thu Aug 11th, 2011 at 01:36:28 PM EST
[ Parent ]
Dollar/euro:

No dramatic movement.

People are moving from the euro and dollar to the Yen:

Yen/euro

Yen/dollar

to the Yen.  

For giggles:

Euro/Swedish Krona:

Dollar/Krona:

So if people are moving out of the euro or dollar they are parking their money in the Yen or the capitalist paradise of Sweden.  :-)

Thus, I think it's safe to claim the price rise of US Treasury instruments, and the resulting decline in their interest rates, is people moving within the dollar.  

One thing that may also bear on this is we're hearing, in the US, there are trillions of dollars owned by US corporations being held outside the US because they don't want to pay the repatriation tax.  Buying Treasuries is as good a place as any to park it until they decide what to do.  

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Thu Aug 11th, 2011 at 02:33:30 PM EST
[ Parent ]
"Decide what to do" or get their flunkies in Congress to waive the tax.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
by ATinNM on Thu Aug 11th, 2011 at 02:35:07 PM EST
[ Parent ]
No, a dropping €($)/SEK exchange rate means that people are moving out of Swedish currency, which is consistent with the general pattern of people moving into large currencies during times of uncertainty.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Aug 12th, 2011 at 05:58:40 AM EST
[ Parent ]
If $1 bought 11 SEK three months ago and buys you 10 SEK today the purchase cost of the SEK has risen when measured in dollars.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
by ATinNM on Fri Aug 12th, 2011 at 12:55:55 PM EST
[ Parent ]
Indeed. But what the graph actually says, should you inspect the relevant axis, is that last month it cost € 0.11 to buy SEK 1, and now it costs € 0.10.

So € 1 used to buy SEK 9, and now it's buying SEK 10.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Aug 12th, 2011 at 03:17:31 PM EST
[ Parent ]

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