32 dollar for 1 euro at the end the year 1

Always lowest. The dollar continued to decline yesterday, faced with almost all the currency, and in particular deal with the euro. Thus, the greenback fell to 1,3178 dollar for 1 euro during the day, which is its lowest since March 2005, for twenty months, before moving to 1,3125 $ for 1 euro in the late afternoon. A level begins to worry European leaders. "The recent depreciation of the dollar must raise our collective vigilance," said yesterday the boss of Bercy, Thierry Breton, a few hours before the start of a meeting of Finance Ministers of the euro area.

In the absence of the publication of new statistics, yesterday, currency traders continued to worry about the State of health of the US economy. "In recent weeks, market began to fear a hard landing of the US economy, as a result of an extension of the real estate downturn to other sectors", stressed Nordine Naam, strategist at IXIS CIB. The downward revision of the growth prospects of the White House for 2007, last Wednesday, has even cooled.

Now building on a decline in the rate of the US Federal Reserve in the first half of 2007, to deal with the coup of brake, investors and hedge funds began to bet on a decline in the dollar and a rising euro. So during the same period, the statistics published in Europe highlighted the effect of growth on the Continent, and that the European Central Bank should continue, it tighten its rates. It has been suggested that she was going to raise them at its next meeting, on 7 December.

The behaviour of firms also supports the euro, said Hans Redeker, responsible for the strategy change in BNP Paribas. "Exporting European companies who had not anticipated the weakening of the dollar, and were not covered against this decline, are currently buying of the euro."

Continuation of the decline

In this context, the US statistics which will be published this week, and in particular housing in October sales figures, released today, will be particularly followed. If these numbers are bad, the decline in the greenback could be packing, accentuated by technical reasons. "1.31 Dollar for 1 euro threshold has been crossed, the next technical resistance threshold lies now at 1.36 dollar," said Nordine Naam. It however not be betting on such a scenario, continuing to build on a landing soft US economy.

Hans Redeker, responsible for the strategy changes in BNP Paribas, j., on the contrary, that the decline of the dollar can only continue at a steady pace, in the light of the slowdown in the US economy, and the extent of the US deficits. This table on a green ticket to 1.32 dollar for 1 euro at the end the year, 1.35 dollar in the first quarter 2007, and to 1.40 dollar for 1 euro in the second quarter of 2007.

Finally, more top dollar, the euro meet recorded yesterday, a new all-time record against the yen. The European currency as high at 152.40 Yen late afternoon, which is its highest level since its inception. The Governor of the Bank of Japan, Toshihiko Fukui, thus reiterated yesterday that he did not date formula for the next Japanese monetary tightening. The reduced expectations of a new higher Japanese rates this year, and so the yen.