Thursday, November 22, 2007

Weak dollar

Wed night, Asian markets were mixed following a difficult day in NY. But Shanghai dropped 2% to under 5000. Out of the opening gate tonight, it's down another 1% to 4940. They are concerned about a slowdown in the US market, their biggest market. Just a few weeks ago, it topped 6000. Other markets tonight are mixed, probably waiting to see US markets tomorrow.

I keep thinking about the weak dollar. The dollar keeps hitting new lows, tough to figure out. The Yen is "up to" 108+, last month it was around 115. Then they said 113 was very high. The Euro is over $1.48. Today, the head of Airbus said they're being hurt very badly by the cheap dollar (planes by Boeing cost less while theirs cost more). That's good for US business but gets complicated in a worldwide economy. Each multinational company will have it's own reaction to the weak dollar as many have divisions in other countries. In the coming months, we will learn more about how US companies are impacted by the weak dollar.

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