Thursday, November 30, 2006

The US Dollar again

Well the Fortune has an article on it posted on the CNN website: The dollar's slide: How far, how hard

  • The dollar has tumbled about 2.5 percent against the euro in the five sessions through Tuesday. Although the greenback came back a bit Wednesday, the dollar's near its weakest against the euro since March 2005. The dollar also fared badly against the British pound, though it's done slightly better against the lowly Japanese yen
And the most interesting comments were the last two paragraphs.

  • "What we really should focus on is that fact that the Americans were on holiday and foreigners decided to sell," said Axel Merk, manager of the Merk Hard Currency Fund, which has $47 million under management, referring to the dollar's recent drop. "Given the extent to which we're dependent on foreigners to prop up the dollar because of our current account deficit, that's worrisome."
    "A dollar decline is in nobody's interest, but it's highly overdue and will happen at some point," Merk said.
And did you read Gary Dorsch editorial, Will China lead a stempede out of the US Dollar?