The Gold-Scotch Connection!

Now even Iran is jumping on this dollar bull market… The Iranian central bank has announced that it will sell 45 billion euros from its foreign exchange reserves to buy dollars and gold, China's official Xinhua news agency reported on Wednesday, citing unspecified Iranian media reports, Reuters reported.

RBA Gets It Started

What did the RBA do? Nothing.

And their inaction confirmed what traders have been anticipating: a very unstable foundation for the global economy. Thus, despite the outlook for Australia’s economy in the long-run, it’s certainly no time to be raising interest rates any higher.

So after a very quiet memorial day in the FX market, the Australian dollar, naturally, is reacting most sharply to the RBA’s assessment of global economic conditions. And the euro isn’t doing so hot either.

Hodgepodge Friday

The Crisis is “over”…yeah, okay!

If you were worried about the euro, you can stop now. We saw a story on Bloomberg that quoted Paris-based money manager Emeric Challier as saying, “The crisis is over.” Now that the euro has plunged against the dollar, it will be a big boost to exports for Europe and allow them to turn this ailing ship around nicely, goes Mr. Challier’s thematic.

Now Germany knows how we feel.

(First, let me quick thank the fellows over at the Telegraph for the inspiration behind today’s Currency Currents.)

Perhaps it’s just too entertaining to ignore.

As mentioned, Treasury Secretary Geithner made his way to Europe this week. Here’s one subsequent quote from none other than Mr. G, as reported by the Telegraph:

“The big lesson of the US financial crisis is that you have to act quickly and with force.”