A portion of an article on Bloomberg today is posted below:


Dollar Drops to Record; UBS, JPMorgan, Merrill, Lower Forecasts
Nov. 25 (Bloomberg) -- The dollar declined to $1.32 against the euro for the first time as UBS AG, JPMorgan Chase & Co., Merrill Lynch & Co. and Deutsche Bank AG reduced their forecasts for the U.S. currency.

``For each currency you have to ask what is the biting point when the negative impact of the currency appreciation will dominate,'' said Alex Patelis, Merrill's head Group of 10 currency strategist in London. ``For Europe that is somewhere between $1.35 and $1.40, and for Japan it's 90 and 95 yen.''

The dollar fell to $1.3241 per euro at 6:32 p.m. in London, from $1.3186 late in New York yesterday, according to electronic currency-dealing system EBS, after reaching a record $1.3248 earlier. It was also at 102.57 yen, from 102.79, after dropping to 102.40, the weakest since March 2000.

All four banks predict the record deficit in the U.S. current account, the broadest measure of trade, will undermine the U.S. currency. A wider gap means more dollars need to be converted to other currencies to pay for imports. The dollar will extend its slide on expectations policy makers will fail to halt its decline, according to Merrill, JPMorgan and Deutsche Bank.

``We are increasingly dependent upon an inflow of foreign capital,'' said Paul Volcker, a former chairman of the Federal Reserve, in an interview with PBS television late yesterday. ``The problem is how long can this go on,'' he said. ``When something happens it tends to go further than you imagined and that's the history of financial crises.''

`Enough Is Enough'

The four banks account for 34 percent of the $1.9 trillion-a- day currency market, according to Euromoney magazine. Merrill yesterday cut its March forecasts for the dollar to 96 yen and $1.39 from 100 and $1.33. JPMorgan today cut its estimates to 96 yen and $1.37 per euro in March, from 100 and $1.30 before.

UBS, the world's largest currency trader, lowered its three- month dollar projections yesterday to 103 yen from 107, and to $1.36 per euro from $1.30. Deutsche Bank expects the dollar to weaken to $1.43 per euro and to 93 yen by the end of 2005, from previous forecasts of $1.37 and 99 respectively.

``The dollar has to fall to a level where policy makers start to say enough is enough, but we don't believe that is going to happen for some time,'' said Paul Meggyesi, a currency strategist at JPMorgan in London.

Business confidence in Germany, Europe's largest economy, fell to the lowest in more than a year in November. The Munich- based Ifo institute cited the euro's climb as a threat to growth. The group's confidence index fell to 94.1, the lowest since September last year, from 95.3 in October.

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Chandresh

Advice is free – lessons I charge for!!

Here is the link for getting live rates for various currencies:

http://www.mgforex.com/eng/advanced/content/Interest.asp" target="_blank">http://www.mgforex.com/eng/advanced/content/Interest.asp</a>

Chandresh

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Chandresh

Advice is free – lessons I charge for!!

Playing in currency markets requires the skills of an expert. And even the experts hedge their risks.

Though I am not a currency expert but, at an opportune time in future, I plan to invest in either ETFs, ADRs or GDRs on NYSE. I would prefer the investment vehicles to be from one of the BRIC countries or Japan. For my risk profile these investments would provide sufficient hedge against unexpected currency movements.

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Man's Best Friend

Instead of selling USD and buying the CDN or EURO you may want to consider buying GOLD... which is reconvertible to any currency when needed.
So assuming you do not need your USD immediately to support your living expenses in canada you buy gold (or gold certificates) and sit tight. if gold hits 700 USD you may want to take some profits then (to compensate for what you have lost now.) if USD dollar later rises then CDN will drop and you can earn profit when you get back to CDN if needed.

Gold is tax free on purchase.... in canada.
do your due deligence do let me know what alternative you choose.... this is just a suggestion

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Unfortunately, Canadian Economy depends too much on exports to the US and hence any weakness in US economy is bound have repercussions on Canadian economy.

I believe, Canada should look towards increasing trade with China and Japan or we'll go down with badly managed US economy.

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Under cover mosque
http://video.google.ca/videoplay?docid=2668560761490749816&ei=ZdwxSc74L4ig-AGZ4YHiDQ&q=undercover+mosque&hl=en" target="_blank">http://video.google.ca/videoplay?docid=2668560761490749816&ei=ZdwxSc74L4ig-AGZ4YHiDQ&q=undercover+mosque&hl=en