Petrol and diesel have never been so expensive
Prices January achieve maximum. Euro and oil also touch the ceiling.
Margarida Peixoto
Never the dollar was so cheap for Europeans. With just one euro, it is possible to buy a dollar and a half - a milestone that had never been reached, since the single currency was created in January 1999. And as the trend of appreciation of the euro against the currency of the largest economy in the world is to remain at least until the third quarter of this year, the consequences came to stay. Import of the United States will continue to be cheaper, but also will make exporting more difficult.
"We believe that the euro will continue to highlight this year," states Howard Archer, the Global Insight economist, the Economic Daily. "In April a euro should assert 1.55 US dollars," estimates, stressing that this recovery is "mainly a matter of weakness of the American economy". While the American economy does not signs of recovery - and as economists and investors do not foresee a drop in interest rates in the euro area before June this year - the dollar will continue devalued, bringing both positive and negative consequences for the two sides of the Atlantic.
First, European products lose competitiveness against the Americans (as they become cheaper), which hampers exports to the United States and the countries that operate in euros. "Companies in the euro area become less competitive in its home market of the products imported from the United States or countries that operate in dollars," says Howard Archer yet.
Moreover, entrepreneurs have the advantage of having a shield to rising oil prices. All because the euro has been practically value in the same proportion of the increase in barrel of crude. "In dollars, the oil rewarded 3.5% since January, but the rise in euro was only 0.8%," notes Rui Constantino, chief economist of Santander. According to the calculations of the economist, a barrel of oil cost 64.48 euros at the end of 2007 and now costs 64.99 - an increase insignificant.
But if the price of the barrel remains protected, the petrol bombs in the Portuguese never been so expensive. "Nevertheless, the increase in dollars is the reason for gasolineiras rising fuel prices", referred Pedro Lino, economist and president of Broker Chng. In Portugal, unleaded petrol and diesel last month reached the highest since the liberalisation of the market (in 2004), plus 3% in the price of the liter, according to the Directorate General of Geology and Energy.
At the time of investing in North American territory, or any other country that is linked to the dollar, Europeans stand to gain from the fall of that currency, as will be cheaper. The downside is that attract investments to the euro zone also becomes more complicated "because, for businesses and foreign investors, it is more expensive," recalls Howard Archer. Tourism is another sector affected: the trips to the countries associated with the dollar are cheaper, but attract tourists to the euro zone becomes a more difficult task.
Weakness American guarantees strong euro
"The main reason for this particular recovery of the euro against the dollar was the disclosure of the index of consumer confidence North American," argues Katrin Robeck, economist of Moodys Economy.com, the Economic Daily. "Caiu much January to February, more than expected," justified. Proof that the appreciation of the euro against the dollar is a reflection of the weakness of the American economy is the loss of value of green notes to other currencies besides the single currency. "The USA dollar is also hitting minimum against other currencies," notes the economist. Desvalorizou against the yen (one US dollars yesterday bought 106.35 yen, instead of 107.28) and reached a minimum 23 years before the dollar in New Zealand.
Moreover, the latest indicators of the North American economy - as a drop in the price of homes and resales divulgas this week - led the chairman of the Federal Reserve, Ben Bernanke, to give back signs that are willing to cut back the interest rates. "We hope that the Fed cut interest at 0.5 percentage points more, to 2.5% at the end of April," Howard Archer defends. If the fall happens, means a reduction of 2.25 percentage points since September last year - a clear indicator of the severity of the slowdown in the United States
Prices January achieve maximum. Euro and oil also touch the ceiling.
Margarida Peixoto
Never the dollar was so cheap for Europeans. With just one euro, it is possible to buy a dollar and a half - a milestone that had never been reached, since the single currency was created in January 1999. And as the trend of appreciation of the euro against the currency of the largest economy in the world is to remain at least until the third quarter of this year, the consequences came to stay. Import of the United States will continue to be cheaper, but also will make exporting more difficult.
"We believe that the euro will continue to highlight this year," states Howard Archer, the Global Insight economist, the Economic Daily. "In April a euro should assert 1.55 US dollars," estimates, stressing that this recovery is "mainly a matter of weakness of the American economy". While the American economy does not signs of recovery - and as economists and investors do not foresee a drop in interest rates in the euro area before June this year - the dollar will continue devalued, bringing both positive and negative consequences for the two sides of the Atlantic.
First, European products lose competitiveness against the Americans (as they become cheaper), which hampers exports to the United States and the countries that operate in euros. "Companies in the euro area become less competitive in its home market of the products imported from the United States or countries that operate in dollars," says Howard Archer yet.
Moreover, entrepreneurs have the advantage of having a shield to rising oil prices. All because the euro has been practically value in the same proportion of the increase in barrel of crude. "In dollars, the oil rewarded 3.5% since January, but the rise in euro was only 0.8%," notes Rui Constantino, chief economist of Santander. According to the calculations of the economist, a barrel of oil cost 64.48 euros at the end of 2007 and now costs 64.99 - an increase insignificant.
But if the price of the barrel remains protected, the petrol bombs in the Portuguese never been so expensive. "Nevertheless, the increase in dollars is the reason for gasolineiras rising fuel prices", referred Pedro Lino, economist and president of Broker Chng. In Portugal, unleaded petrol and diesel last month reached the highest since the liberalisation of the market (in 2004), plus 3% in the price of the liter, according to the Directorate General of Geology and Energy.
At the time of investing in North American territory, or any other country that is linked to the dollar, Europeans stand to gain from the fall of that currency, as will be cheaper. The downside is that attract investments to the euro zone also becomes more complicated "because, for businesses and foreign investors, it is more expensive," recalls Howard Archer. Tourism is another sector affected: the trips to the countries associated with the dollar are cheaper, but attract tourists to the euro zone becomes a more difficult task.
Weakness American guarantees strong euro
"The main reason for this particular recovery of the euro against the dollar was the disclosure of the index of consumer confidence North American," argues Katrin Robeck, economist of Moodys Economy.com, the Economic Daily. "Caiu much January to February, more than expected," justified. Proof that the appreciation of the euro against the dollar is a reflection of the weakness of the American economy is the loss of value of green notes to other currencies besides the single currency. "The USA dollar is also hitting minimum against other currencies," notes the economist. Desvalorizou against the yen (one US dollars yesterday bought 106.35 yen, instead of 107.28) and reached a minimum 23 years before the dollar in New Zealand.
Moreover, the latest indicators of the North American economy - as a drop in the price of homes and resales divulgas this week - led the chairman of the Federal Reserve, Ben Bernanke, to give back signs that are willing to cut back the interest rates. "We hope that the Fed cut interest at 0.5 percentage points more, to 2.5% at the end of April," Howard Archer defends. If the fall happens, means a reduction of 2.25 percentage points since September last year - a clear indicator of the severity of the slowdown in the United States
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