Slippin’ and Slidin’
Apr 30th, 2006 at 5:41 pm by Susie
Oh yeah, as if switching from Flounder to Tony Snow will distract us from news like this:
The dollar has embarked on a big decline that will see it fall against all leading currencies, according to analysts. The plunge is being prompted by America’s $800 billion current-account deficit, they say.
The dollar has been under pressure following last weekend’s meeting of G7 finance ministers and central bankers, which emphasised “global imbalances†and said currencies should reflect economic fundamentals.
“I think this is it,†said Tony Norfield, global head of currency strategy at ABN Amro. “The dollar has been supported by high yields but markets are saying that is no longer enough. The question for policymakers is going to be how to manage the dollar’s decline.â€
