Archived IMT (2009.05.08)

Dollar battered across the board; EURUSD hits 2 month highs at $1.3620, making its biggest weekly jump since the week of the March 18 when the Fed announced the purchase of LT treasuries. Soaring stocks are driving down USD across the board and JPY down against all currencies except for USD. The plummeting dollar is MAKING CHINA NERVOUS to the extent that Chinas ambassador Zhou remarked China will continue buying treasuries and that the dollar will remain the worlds reserve currency for some time and that the idea of a new global currency was more of a scholarly exploration.