Sunday, March 2, 2008

The race is on.

Right now, the only major currencies that trade for more than a dollar are the British pound, the Euro and the Canadian dollar. Two more currencies are making a push to join that club, the Aussie dollar and the Swiss franc. I did a quick check around the Internets and neither of these have traded 1:1 with a dollar in a long time, if ever. Both have been hovering around 90 cents for a while, but with the dollar's weakness in the past few sessions, both the OzDollar and the Swiss Franc have been rising. Here's the situation as of this weekend.

Swiss Franc: 96.1 cents U.S.
Australian Dollar: 93 cents U.S.

Many other currencies are climbing as well, but none are near the dollar mark. The Japanese yen is getting close to being worth a penny, a mark it broke back in the mid '90s, and the Mexican peso is getting close to being worth a dime, a mark it has seen in the past 20 years.

If we get to a dollar a yen, we will probably be on the big rock and sharp stick currency exchange rate by then, and hoarding dollars won't make that much sense.

Just sayin'.


FranIAm said...

I suppose that in some ass-backwards way, I should be glad that I don't have so many dollars...

No, I guess not. I should have a lot of Euros, but don't got them either!

Dee Loralei said...

I don't got no gold either, Fran and it's close to $1,000 an ounce.

Matty, I know you're a fan of ICanHasCheesburger and an Obama fan. I was over at Trex's place tonight and someone dropped this link and I just giggled quite a few times. Anyway, the name of the place is YesWeCanHas (I've tried to link it three times and man am I an ignorant neophyte so I'm going to post this comment with the name and hoping you'll be able to google it. And then I'll try to link it in another post, so you don't have to goggle and can just click.


Dee Loralei said...

Oh Please tell me this is working.


Matty Boy said...

Thanks, dee. The link doesn't work, but I'm not so lazy I can't cut and paste. Good stuff and thanks again.

dguzman said...

Scary news. However, I'm surprised the yen is so low, even lower than the lowly peso. Wow.

Matty Boy said...

The yen has always been low, dg. It's a relative thing, though. When it gets over a penny a yen, that means a lot of strength in the Japanese economy vis-a-vis the U.S. and other world leaders.

Distributorcap said...

we are in major trouble due to this dollar thing

Matty Boy said...

Absolutely right, Dcap. Having the Treasury secretary tell us the fundamentals are strong is such obvious bullshit, I wish we could bring back the 19th Century practice of throwing vegetables at public speakers.

We have had GENERATIONS of trade deficits, nearly a decade of budget deficits, a growing imbalance of rich to poor with a shrinking middle class, and the greatest middle class asset, home ownership, is taking multiple beatings.

Other currencies are rising against the dollar because our fundamentals are shit, and no official proclamations change that fact.