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Posts Tagged ‘devaluing the US dollar’

The US dollar is in a tail spin, it is down against almost all major currencies and with the word out that the current administration is looking to use inflation to pay off deficit, there is no up is sight.  Buckle up, we are headed for hyper inflation…

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Dollar tumbles to fresh 15-year low against yen

TOKYO (AFP) – The dollar tumbled to a fresh 15-year low at 82.22 against the yen in Tokyo trading hours on Thursday on persistent fears over the US economic outlook.

The dollar fell from 82.87 in earlier trade to well below the level at which Japan last month carried out its first currency market intervention since 2004 to weaken the yen and protect an export-led recovery.

It later strengthened back to the mid 82-yen level.

The markets increasingly expect the US Federal Reserve to pump more money into the system to boost the flagging economy, even if doing so weakens the dollar and risks fanning inflation.

“The basic trend is dollar selling on the expected credit easing… The market is now sensitive to any negative news on the US economy,” said Yasuyuki Takeuchi, dealer at Mitsubishi UFJ Trust and Banking.

The Australian dollar on Thursday surged to an all time high of around 99.00 US cents, traders said, outstripping the record of 98.49 since it was allowed to float in December 1983.

The euro was trading close the key 1.40 dollar level, at around 1.3983.

“A lot of the trading community thinks this has further to go,” Daragh Maher, a senior currencies analyst at Credit Agricole in London told Dow Jones Newswires.

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