Dollar starts the big slide against major currencies

[katty]

cont'd: http://www.timesonline.co.uk/article/0%2C%2C2095-2157799%2C00.html

The Sunday Times - Business

The Sunday Times April 30, 2006

Dollar starts the big slide against major currencies
DAVID SMITH, ECONOMICS EDITOR

THE dollar has embarked on a big decline that will see it fall against all leading currencies, according to analysts.
The plunge is being prompted by America’s $800 billion (£438 billion) current-account deficit, they say.

The dollar has been under pressure following last weekend’s meeting of G7 finance ministers and central bankers, which emphasised “global imbalances” and said currencies should reflect economic fundamentals. Then China raised its key interest rate to 5.85%, its first hike for months, and Ben Bernanke, the new Federal Reserve chairman, hinted that American rates would pause at 5% after a rise in May.

Analysts say that without interest-rate support, the dollar will be weighed down heavily by America’s imbalances.

“I think this is it,” said Tony Norfield, global head of currency strategy at ABN Amro. “The dollar has been supported by high yields but markets are saying that is no longer enough. The question for policymakers is going to be how to manage the dollar’s decline. It won’t be a one-way street but the fall is likely to be biggest against Asian currencies.”

[Zenlitened]

1. The Bush cabal has done more to harm America than most terrorists...

... could ever dream of.

Sickos.

:grr:

[katty]

2. the harm has been no less than stunning (to me)

[rpannier]

3. It's been dipping against the Won for quite a while.

I live and work in Korea and get paid in Won (Korean currency).
Every month when I send money home to the states the dollar keeps dipping.