US dollar plummets ahead of debt-limit vote
#1 July 27, 8:45 am
US dollar plummets ahead of debt-limit vote
27 Jul, 2011

US dollar plummets ahead of debt-limit vote

The US dollar weakened against most of its major peers, as American President Barack Obama and the Congress remain at odds over their competing plans to cut spending and raise the debt limit.

Today's vote will determine whether the law makers should raise the US debt limit, in an attempt to prevent the world's largest economy from defaulting on its debt and receive a credit-rating downgrade. Meanwhile, the debt crisis has become a hot political issue as both parties are preparing for the November 2012 election, during which Obama is assumed to seek a second term.

Consequently, the greenback slid to as weak as 77.66 yen, a level unseen since March 17, before trading at 77.68 yen as of 7:23 am in London this morning. The dollar also fetched $1.4502 per euro and $1.6439 against the pound.

"The weaker dollar direction is a more powerful influence than strong gains in growth-oriented currencies", said Greg Gibbs, a foreign-exchange strategist in Sydney at Royal Bank of Scotland Group Plc. The market is factoring in higher risk of a downgrade of the US's credit rating, he added.

The US currency also sank to a record low of 87.65 cents per New Zealand dollar before trading at 87.51 cents, down by 0.5 percent on the day. It dropped by 0.2 percent to 80.01 Swiss centimes after dropping to an all-time low of 79.97 centimes.
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#2 June 17, 5:51 am
everybody can sleep quite and certain that the usd will never get out of the leading monetary value.
those who has value now stock it on usd or gold .maybe one day the arb golf leaders think to adopt the dollar or to chage their national currency into golden coins .
like that maybe they will help each others economy .
if not they will adopt the usd soon or later .
greece is thinking about the usa proposition to adopt the usd as national currency .Smile
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