Dollars drop becomes ominous [View All]

[ringmastery]

http://uk.news.yahoo.com/031221/325/ehl5i.html

Dollar's drop becomes more ominous
By Nick Olivari

NEW YORK (Reuters) - After months of looking at nothing but the bright side of a weaker dollar, investors are starting to look at the dark side of its struggle against the euro.

Demand for the dollar has been dampened by concerns about the widening U.S. current account deficit and expectations that benchmark U.S. interest rates will remain low.

For most of the past six months, that was seen as positive for the most part, as U.S. goods and services become cheaper compared with those produced overseas. Now though, investors are looking at the pace of the dollar's decline, fearing that an orderly drop in demand may turn into a rout.