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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.  

Skepticism is the first step on the road to truth. -- Denis Diderot

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.

Skepticism is the first step on the road to truth. -- Denis Diderot
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

Austerity can only be implemented in the shadow of a concentration camp.

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.

Skepticism is the first step on the road to truth. -- Denis Diderot
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

Austerity can only be implemented in the shadow of a concentration camp.

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

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