Find more news about the 2009 stimulus package here.  Also, check out our post about 10 ways the stimulus plan could save the dollar.

Rising against the Euro, Yen and Swiss Franc, the greenback sought strength in the release of preliminary plans for the Obama administration’s anticipated stimulus package.  Totaling $775 billion over two years, with additional costs pushing the final billing to over $800 billion, the current package is expected to deliver more aid to individuals and businesses.  In particular, the package would allow businesses larger tax incentives to retain employment and boost reinvestment.  The notion helped keep dollar prospects alive as supported, yet tepid growth, could be expected for the future.  

In addition, helping the greenback gain against the Euro was an early morning report showing prices dropping in the European Union.  Declining to the lowest level in almost two years, inflation across the Atlantic slowed to a tepid 1.6 percent on falling commodity prices and thin consumer spending.  The figure is significantly lower than the 4 percent acceleration witnessed in mid 2007 and increases the likelihood that interest rates will be cut again next time European policy makers meet.  The sentiment is widely supported by comments made over the weekend by ECB Vice President Lucas Papademos. Currently the Euro is continuing its decline into the late New York evening, trading down at 1.3502 from the 1.3633 open.

Tags: 2009 Stimulus Package, US Dollar

This entry was posted on Tuesday, January 6th, 2009 at 6:42 pm and is filed under Currency Trading, Euro, Stimulus Plan, US Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.