US Dollar continues to head south
Sunday, 09 March 2008

Washington DC, US 

Image The dollar fell toward a record low against the euro and the lowest in eight years versus the yen on speculation U.S. retail sales and consumer confidence report will add to signs the economy is on the verge of a recession. As an illustration the US Dollar was worth 82 denars back in 2000. Today is worth 39 denars!

The U.S. currency also dropped against the British pound and the Swedish krona after a labor report on March 7 bolstered speculation the Federal Reserve will slash interest rates by 0.75 percentage point to 2.25 percent this month. The yen gained as a Japanese government report showed machinery orders rose at the fastest pace since 2000 in January, signaling demand from emerging markets may help the economy withstand a U.S. slowdown.

 ``The dollar will continue to head south,'' said Yuji Saito head of foreign-exchange sales in Tokyo at Societe Generale SA, France's second-largest bank by market value. ``The Fed will be forced to lower rates down to 2 percent amid the slowing economy. I expect the dollar to fall below 100 yen this week.''

 



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