Dollar--Still Strong, But More Flexible--Sinks

[UpInArms]

http://www.forbes.com/home_asia/2003/09/23/cx_da_0923topnews.html

NEW YORK - The U.S. strong-dollar policy never changes, but from time to time, there are changes in the interpretation. This morning, the dollar fell to 33-month lows against the yen and weakened against other currencies, too, all in response to the Group of Seven statement made in Dubai on Sept. 22, which mentioned the desirability of "more flexibility in exchange rates" for major countries.

What the statement means was still being debated, but to some it meant that the Bank of Japan should cut back on interventions in currency markets deigned to cut the price of the yen. The word in those markets is that the BoJ has actually stepped back over the past few days, which allowed the dollar to slip sharply against the yen, causing a broader dollar relapse against other major rivals.

"For a long time, the United States has been moving away from a strong-dollar policy. This is definitely another nail in the coffin," Lara Rhame, senior economist at Brown Brothers Harriman in New York, told Reuters. In general the so-called strong- dollar policy advocated by U.S. Treasury chiefs since Lloyd Bentsen, who served in the first years of the Clinton administration, has been gradually toned down by his successors, foreign exchange analysts believe.

...more...

and for a look at the dollar - go here:

http://quotes.ino.com/chart/?s=NYBOT_DXY0

[ixion]

1. changes in the interpretation

that's pretty much S.O.P. for the Bush cabal. :eyes: