Ail said:
Err ?
January 2008 : 2 $ for 1 pound. march 2009 : 1.42$ for 1 pound. If that is not a decline, I don't know what it is...
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You are right. But there is a difference. The USD-UKP ratio has been in this neighborhood before (see 2001) -- so it is not unprecedented or strange -- but the pound is low.
Meanwhile, the JPY-UKP ratio has not been this way since 1995.
Plus, the pound retained 73% of its value against the dollar (Jan. 2008 vs. Jan. 2009) as compared to only 61% of its value against the Yen.
Also, Americans should note that the JPY-USD ratio is also about where it was in 1995. However, the dollar-yen relationship has shown much less volitity.
Mike from Morgantown
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