Dollar Greets 2004 with Cheerless Tone

[twilight]

<<LONDON (Reuters) - The dollar hit three-year lows against the yen and weakened against the euro on Friday, the first full trading session of 2004, as worries about the U.S. current account deficit continued to undermine the greenback.

Tokyo markets were shut for a holiday, and a relief rally in the dollar in Singapore trade due to a lack of major attacks in the West during the New Year celebrations proved short-lived.

Analysts said this reflected a continuation of the dollar's inability to rally on good news over the past few months.

"The market continues to have a 'sell the dollar' mentality," said Kamal Sharma, foreign exchange strategist at Dresdner Kleinwort Wasserstein. "Investors' sentiment toward the dollar is very bearish."

Worries that the U.S. will not attract investment flows to cover its widening current account deficit knocked 17 percent off the dollar's value against the euro in 2003.>>

link ...

http://story.news.yahoo.com/news?tmpl=story&cid=568&ncid=749&e=1&u=/nm/20040102/bs_nm/markets_forex_dc

I like the reality of this particular story - isn't all roses to say the least! I wonder how low the dollar will go - I heard $.70 in June, 2003.

:dem: