Telegraph: Fears of dollar collapse as Saudis take fright

"Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East. The Fed's dramatic half point cut to 4.75pc yesterday has already caused a plunge in the world dollar index to a fifteen year low, touching with weakest level ever against the mighty euro at just under $1.40. There is now a growing danger that global investors will start to shun the US bond markets. The risk is that flight from US bonds could push up the long-term yields that form the base price of credit for most mortgages, THUS DRIVING THE PROPERTY MARKET INTO EVEN DEEPER CRISIS!!"