Euro hits all time high against USD after Bernanke testimony.

November 9, 2007 - Forex Economic News

The euro briefly reached a new record high against the U.S. dollar today in the wake of yesterday's testimony of U.S. Fed Ben Bernanke in which he said economic growth would likely slow in the 4th quarter. According to the Associated Press report(WP), the Euro reached a high of 1.4752 early today before retreating and the dollar has fallen over 11% against the euro for the year.

In Economic news released today by the Commerce Department, the U.S. trade deficit for September shrank 0.6% to 56.5 billion. This was a surprise to economists who predicted the deficit to increase. U.S. exports got a boost from the weak dollar and increased 1.1% to a record $140.1 billion. September imports rose 0.6% to $196.6 billion and the U.S. trade deficit with China rose 5.5 % to $23.8 billion.

Paulson wants yuan higher.

U.S. Treasury Secretary Henry Paulson on thursday continued to push China to appreciate its currency to counter growing imbalances that may trigger protectionist trade policies and that the Chinese should pursue a market driven exchange rate. Read the full story here.

Tags: Henry Paulson, China, Euro, Trade Deficit, USD, Yuan - - - - -Blog index