Thursday, May 22, 2008

Prospects for US Dollar Improve

A reader recently asked what would stop the dollar devaluing. I answered here There are now signs that the lengthy decline in the Dollar may be over.
  • Firstly, the downturn in the US economy, may not be as bad as people feared.
  • The dollar is effectively cheap compared to the Euro.
  • The Strength of the Euro to Dollar belies weaknesses in the Euro economy
  • US current account has shown signs of improvement.
It has to be remembered the extent to which the dollar has already fallen.

More on: What will stop the fall in the Dollar

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