EURO vs USD

[sandraman]

euro/dollar reached 1.5150

[Chief]

ay, this is beginning to cause trouble in europe, the higher it goes, the worst the inflation is

[sandraman]

euro/dollar reached 1.5225

[sandraman]

euro/usd today reached 1.5275

[sandraman]

euro/usd reached today 1.5350

[sandraman]

euro reached 1.54

[sandraman]

euro/usd reached 1.5460, wooooooooo what a nice rally

[admiral]

Originally Posted by Chief

ay, this is beginning to cause trouble in europe, the higher it goes, the worst the inflation is

Chief;

It is vica versa , when a currency appreciate the inflation will go down ,because the price of imported goods will drop due to the appreciation of the currency .

The country that will start to suffer from inflation is the USA , because of its currency depreciation , which will lead to higher prices of imported goods from abroad .

[admiral]

Originally Posted by sandraman

euro/usd reached 1.5460, wooooooooo what a nice rally

Regarding the nice rally you mentioned , i have to say that the rally of the year 2002-2004 was the most spectacular one from 0.86 till 1.36.

At that time i baught euros at 0.88/$ , and everybody were laughing at me that the Euro is a weak currency and cannot compare it to the $ , however by the end of 2004 , i was the one laughing at them .

[suomynona]

Originally Posted by admiral

Chief;

It is vica versa , when a currency appreciate the inflation will go down ,because the price of imported goods will drop due to the appreciation of the currency .

The country that will start to suffer from inflation is the USA , because of its currency depreciation , which will lead to higher prices of imported goods from abroad .

Imported goods will be more expensive to the US consumer. On the other hand, it's easier for them to export goods...


One important thing is to look at how all of this affects the Lebanese economy. We are tied to the USD, since most of our imported goods come from europe (Italy mainly), expect things to get more expensive in Leb.

Also, the price of oil at the pump will also increase (and no, it's not Sanioura ).

I think Lebanon should reconsider the value of the Lebanese Lira. This LL USD fixed rate sucks. We need strong economists and a system that allows them to work....