Wednesday, November 07, 2007

Bush's policies come home to roost

11/6/2007

DJIA closes down -360.92 (-2.64%) at 13,300.02. The Dow had fallen -362.14 on Thursday, November 1st.

Euro trades at $147.31 to the U.S. Dollar. Chinese officials signaled plans to diversify the nation's $1.43 trillion of foreign exchange reserves. “The dollar sell-off was sparked by concern that foreign central banks' diversification away from dollar assets may accelerate,'' said Paresh Upadhyaya, who helps manage $29 billion in currency assets at Putnam Investments in Boston. “The momentum to sell the dollar still persists and I expect further dollar weakness before year end.'' The dollar will decline to $1.50 per euro by the end of the year, according to Upadhyaya. The dollar is “losing its status as the world currency,'' Xu Jian, a central bank vice director, told a conference in Beijing. ``We will favor stronger currencies over weaker ones, and will readjust accordingly,'' Cheng Siwei, vice chairman of China's National People's Congress, said at the same meeting.

The Canadian dollar advanced to as high as $1.1040.

On the New York Mercantile Exchange, gold for December delivery rallied $10.10 to end at $833.50, a record closing high for a front-month gold contract.

Oil traded as high as high as $98.62 dollar per barrel.

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