| In WOT politix because the continued economic stumbling of Europe will play into the hands of those who resent the US and back the Islamacists and China as a result. Note also it will ease some inflation here at home if the price of imports falls. Since we're paying for much of the GWOT, this is one way to ease the pain .... |
The euro fell against the dollar in Asia for a third day this week on concern economic growth in Europe will be worse than that of the U.S.
The European currency also fell after polls showed German opposition leader Angela Merkel may be forced to share power with Chancellor Gerhard Schroeder's party. Merkel is promising cuts in welfare spending and a loosening of labor laws in Germany that if implemented would likely help economic expansion in the country.
``I'm bearish on the euro,'' said Tsutomu Soma, a currencies and derivatives trader at Okasan Securities Co. in Tokyo. ``It's difficult to disregard political uncertainty in Germany, and concern about the economy in the euro region.''
Against the euro, the dollar traded at $1.2233 at 10:25 a.m. in Tokyo, from $1.2286 late yesterday in New York, according to currency-dealing system EBS. The euro was at 135.25 yen, from 135.63 yen.
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