Will the Euro be relatively stronger than the Dollar in the face of global inflation?
*Associated Press, by Martin Crustinger, April 17, 2008
“The dollar hit a new all-time low Thursday, its second record in as many days, as the euro surged to $1.5982.
The euro rose in late-morning European trading above its previous record of $1.5978, set Wednesday. It then settled back slightly to $1.5967.
The dollar has been weighed down by a combination of gloomy U.S. economic data and high European inflation.
The British pound climbed to $1.9771 from $1.9708, and the dollar slipped to 101.96 Japanese yen from 102.04 yen.
The euro gained strength on Wednesday from data showing that annual inflation in the 15-nation euro zone reached 3.6% in March, the highest level in 16 years.
That appeared likely to muffle calls for the European Central Bank to lower its interest rate from 4%.”
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