Wednesday, December 26, 2007

Dollar Still Dropping Like Its Hot


The dollar fell the most in more than five weeks versus the euro on concern slumping retail sales and falling house prices will sustain bets on further Federal Reserve interest-rate cuts next quarter.


The U.S. dollar declined against 12 of 16 most-active currencies after Target Corp., the second-biggest U.S. discount chain, said same-store sales may fall as much as 1 percent as customer visits slowed after the Thanksgiving holiday.



``The outlook for U.S. growth remains weak, which puts pressure on the dollar,'' said Michael Woolfolk, senior currency strategist at the Bank of New York Mellon in New York, the world's largest custodial bank with over $20 trillion in assets under administration. ``The dollar is losing ground.''


Long story short, we are able to buy less with US currency in 2008

No comments:

Post a Comment