Today the dollar hit a new all-time low record against Euro as bets hardened that the Federal Reserve will cut interest rates next week to stave off a deeper slump in the US economy. Euro rose as high as $1.3901 in late afternoon European trading - hitting its previous record of $1.3852, reached on July 24.
The dollar has been under increasing pressure over the past three months as the liquidity crisis grips financial markets and fears grow of a broader slowdown in the US economy.
Some analysts predict that the dollar will reach $1.40 per euro by September 2008.
The dollar was lower on Wednesday against the British pound, drifting down to $2.0296 from its level of $2.0317 in New York late Tuesday.
Economics tells us that currencies rise and fall against one another because of inflation. Currencies move down when traders believe that the economy in one country will be more inflationary than in others.
User comments
What can be done. Will another War help? If so, after Iran falls and we occupy them, what will happen to our dollar.
The Roman empire fell after a 1000 years? Well, America we've still got a long way to go, let's ramp up this dollar so our US Diplomats abroad won't have to take second jobs to eat.
Bonds emitted in Euro have already surpassed by far the value of bonds emitted in $
The world economy is about to realign itself around the Euro as its main currency
It will be quite a change, but no end of the world
And yes, u.s. people will start migrating to the u.s. not in droves, but the uplifting, specialized professionals