On Fri, Sep 19, 2008 at 9:44 AM, Scott asks:
These moves HAVE to be bad for the dollar, no?
Not much effect per se.
Immediate effect is higher interest rates/stronger stocks which very near term helps the USD.
But it seems saudis are hiking price which, if it continues, will again send the dollar down.
Also, the Fed showed some concern about exports softening, which they probably attribute to the recent USD strength.
So seems the Fed and Treasury probably don’t want the dollar to get too strong.
Major equity short covering rally in progress.
When it runs its course, the US economy will still be weak and higher crude prices will be problematic as well.