"It's pretty ugly right now for the dollar."

[TexasLawyer]

New blow to dollar amid U.S. growth fears
By Carter Dougherty Published: September 20, 2007

FRANKFURT: The world dumped the dollar on Thursday, pushing the greenback to an all-time low of $1.40 against the euro and to parity with the Candian dollar for the first time in three decades as currency traders around the world digested the full implications of the U.S. Federal Reserve's new course for interest rates.

The frenzied selling began early in the day in Europe, never let up, and reached across the Atlantic as traders concluded that the lower borrowing costs the Fed introduced on Tuesday would dampen the appeal of dollar-denominated assets like stocks, bonds and real estate just as other central banks are raising rates to create the opposite effect.

Layered atop a weakening U.S. economy that is menaced as well by the prospect of a retreat by consumers who have driven growth for years, the dollar radiated instability as its traditional role as a refuge in times of crisis, one evident as recently as early August, appeared all but forgotten.

"It's pretty ugly right now for the dollar," said Jim McCormick, the London-based chief of currency strategy for Lehman Brothers International. "But the markets are having a very rational response to what the Fed did on Tuesday." The dollar dipped as low as $1.4094 in mid-day trading in New York, having cracked the $1.40 level before trading began in the United States. The dollar also lost ground against the pound, with sterling now worth roughly double the U.S. dollar, and it sank against the Japanese yen.

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http://www.iht.com/articles/2007/09/20/business/dollar.php

[screembloodymurder]

1. The dollar is down 5% against the Euro since early August.

If a T-Bill pays 5%/yr, and the dollar loses 5% in a month, who would buy our debt. If this keeps up, you would lose 50% of your buying power in a year. So much for a nice safe investment.

[cliss]

2. For the people who are out travelling,

or anyone living in Europe for example. The dollar gets them less & less.Or, for example seniors who live in Mexico or anyone who is on fixed payments like Social Secrutiy. They get money in US dollars. To the point where they can't stay any longer.

I've read that thousands of Americans are coming back home because they can't afford to stay in other countries.

Importers are getting Hammered right now.