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Currency outlook: the rise and fall of a great currency
01 December 2004
Mike Halls reports on what the decline and fall of the world's mightiest currency will mean to aviation financiers.
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Mike Halls
Funny money or currency of the world's most powerful economy? It's a moot question. In just over four years, the dollar has moved from being the world's strongest currency to one of its weakest.
In October 2000 it stood at a record high against the euro. Just four years later it has devalued by almost 50% against the euro and, in the closing weeks of 2004, looked set to breach even lower levels.
Theoretically, the coming months may be the best time for non-US airlines — or those whose currency is not tied to the dollar — to expand their fleets since the mid-1990s.
And, according to Airfinance Journal's sample poll of the leading foreign exchange banks, there could well be further to go. Indeed some of the analyst said it was no longer a question of if the dollar reached $1.40/Eu but when and how much further it could slide after that...
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