September 21st 2005
Hurricane Rita weighs on USD
While Hurricane Rita has yet to land, its impact is already being felt in capital and currency markets as traders and investors begin to quantify its potential effect on the Gulf coast economy, which remains fragile in the wake of Hurricane Katrina. While Rita is unlikely to wreck the same amount of damage as Katrina, local authorities have adopted a better-safe-than-sorry attitude, and have already moved to shore up local infrastructure and evacuate those in harm’s way, so as to mitigate the impact. Experts are also concerned that Rita will disrupt oil production, which caused the price of oil to spike almost 10% last week. However, if Hurricane Rita passes without incident, the USD should see some strength. The Federal Reserve raised interest rates yesterday, which will drive long term interest rate differentials between the US and other developed countries, indirectly providing support for the USD. The Financial Times reports:
“The message from the FOMC was clear,” said Derek Halpenny, senior currency economist at Bank of Tokyo-Mitsubishi: “Increasingly inflationary pressures are a greater concern within the FOMC than the slowdown in economic growth post-Katrina.”
Read More: Rita brings weakness to dollar
September 24th, 2005 at 11:58 am
Buy gold or silver you guys digital lifestyle is coming to an end.Bush looks like emperor Nero.America has already had to bring in 2o million illegals prior to storms to work for you cause your too lazy.How many more will be required to rebuild after storms.It will be like the hordes invading Rome.Games up.I guess you might consider it Gods justice for all the exploitation your corrupt dishonest system dishes out.I guess you can hold us all at gunpoint with 200,000 to 300,000 guntoting bush gangsters but i think Rome tried that it will work for a while but you wont enjoy it and you cant hold the masses in starvation for too long before they revolt out of neccessity for survival.Bush has used these storms as an excuse to invade american soil and hold the gun to americans this is no longer a free country.America is turning into a militant police state like Israel.I hope you are all happy and enjoying american democracy this could have all been avoided if you had just been willing to do an honest days work for a livin instead of tryin to get rich by rippin people off.