Up goes the dollar

[admin]

Well, flight for safety, possible decrease in demand for copper, central bank ongoing intervention, are all moving the dollar up.
486+, do I hear 490.

http://www.bloomberg.com/news/2011-03-1 ... emand.html

I honestly feel like this is short-term bounce, and if we see above 500 again it will not be for long. The pressure on the dollar from the peso, just somehow feels more permanent and sustained this time. The center of gravity seems like it is more towards the 460-470 level, than towards the 500+ level. Chile's economy has made some serious gains in terms of unemployment and other growth.

New gas price stabilization measure passed. Not sure what that will mean for inflation.

[Gloria]

What goes down must come up, up, up. YooHoo! Something to smile about! yeah! Hoping and praying!

[Hightower]

Most likely a temporary effort because of the "uncertainty" surrounding the potential catastrophe in Japan.
The smaller currencies always take a beating in such situations as investors seek the relative stability of the larger currencies.
The Swedish krona which has been getting stronger and stronger for the past few months also has taken a beating the last few days against both the Euro and USD.
What is indicative is that while the Euro and USD have been gaining in strength relative to the smaller currencies, the Euro/USD rate itself hardly nudged.

[admin]

Likely the bigger issue will be how inflation in the States plays out, with QE2 through QE3.

What kind of dampener Japan puts on production might be another wild card.

[PenquistaDeCorazon]

In spite of some of the naysayers, the US dollar is still considered a safe haven during times of turmoil vis a vis the emerging currencies. Starting with Egypt, Lybia, and now Japan it has been a nasty month and a half. And with copper down it has not helped. Even the Canadian dollar which had been flying high lost almost 3 cents in less than a week after the earthquake.

Going forward I imagine the Yen will remain strong as money starts flooding in for rebuild.

[regioncentralX]

From the perspective of this USD origin person...approximately 1 week...473-ish to 486-ish...less than a 3% move...yeah, really big f'in move ...but I'll take it ...

In the past 9 years, the USD has been no safe haven vs. CLP unless you cashed out 650-750 CLP.

Also, what safe haven run? The USDI has hardly budged at 75.94. I do see a pop in 30 year bonds though. But will that last when Japan liquidates a large portion to finance reconstruction?

Other musings: Copper at $4.34 is low? Silver at $34+ is low? Gold at $1400+ is low? NY Crude at $100+ is low?

This is no another July-December 2008.

[Gloria]

No----you have it all wrong---its because we made apple pie this morning and everyone wants some---but its not for sale.

p

Todo es para la venta.Te doy una luca por el pie

[PenquistaDeCorazon]

Too late, all gone---til we make another one...

p

I have this recurring dream where I devour an apple pie (lattice topping.... not crumb) with lucuma ice cream on the side. But alas no lucuma here and when I go to Chile I am always too lazy to make a proper apple pie. I think it will be easier for me to get some lucuma powder and make the ice cream here.

[PenquistaDeCorazon]

maybe I should say it was an apple kuchen---before this gets any more out of hand.

p

I will take a good apple kuchen any day.

[jehturner]

Yeah, so people were forgetting yesterday's 0.5% interest rate rise (sorry, would have mentioned that yesterday but was busy with my wedding anniversary). Hopefully it won't interrupt the upward trend for long though... or maybe I shouldn't hope that as it's much the same as hoping for continued chaos in the Middle East & Japan.

[greg~judy]

kindly refer to this thread page... [greg~judy » 18 Mar 2011 05:18]

http://www.allchile.net/chileforum/post ... tml#p60082

[regioncentralX]

481.950 USD/CLP

75.85 USDI

HOT DAMN, the USD is going to da moon I tell ya!!

And the Chilean Peso be melting down...