Fred Harteis News Articles - The dollar dropped sharply against a broad range of major currencies today, and the euro broke through the $1.30 mark for the first time in a year and a half, highlighting concern about the strength of the American economy.
The dollar’s losses came during a thin trading day in which the British pound rose to its strongest value against the dollar in two years. The Japanese yen and the Swiss franc also gained at the dollar’s expense.
Stocks closed lower on Wall Street today after a shortened trading session that was soured by news of the dollar’s woes.
Though the Thanksgiving holiday probably accentuated the dollar’s fall, analysts said the drop appears to reflect concerns that the American economy will continue to weaken as economies in Europe and
“To dismiss this as a technical correction is to overlook the structural reasons why the U.S. dollar is having a very hard time these days,” said Hans Redeker, global head of currency strategy at BNP Paribas in
A number of factors, including slower growth and the multibillion-dollar trade deficit, put the American economy in a vulnerable position compared with its global competitors. While the most recent data show that the trade gap tightened in September, the decline was largely due to falling oil prices. The trade deficit was $586.2 billion for the first nine months of the year, and it remains on track to break last year’s record of $716.7 billion. The biggest chunk by far represents imports from
The trade imbalance will be one of the major issues that Treasury Secretary Henry M. Paulson Jr. and other top Bush administration officials discuss next month when they travel to
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Source: NyTimes.com
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