Wednesday, Sep 26, 2007
As the dollar flirts with all-time lows on a trade-weighted basis, the smell of approaching capitulation is in the air
ft.com: Can sentiment get any worse?
US dollar
Can sentiment get any worse? As the dollar flirts with all-time lows on a trade-weighted basis, the smell of approaching capitulation is in the air. The bears have plenty of fodder. A need to rebalance the huge current account deficit has provided a solid long-term case for dollar weakness. The prop of higher-yielding dollars has been eroded by rising interest rates abroad and now pummelled by the Federal Reserve’s half-point cut.
Meanwhile, the US slowdown is piling on the pain. Tuesday’s horrible housing data again raise the spectre of real estate acting as a significant drag on the US economy and forcing deeper interest rate cuts.
Posted by chris @ 04:37 AM (165 views) Add Comment
1 Comment
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1. alan said...
The dollar has dropped 20% in 5 years. Do you think it needs to drop more then?