Today the dollar reached another record low against the Euro,
Yesterday, on the foreign exchanges the euro traded at close to $1.37, while sterling pushed back above the $2 barrier after being under pressure on Thursday.
The reasons for the fall in the dollar include:
- Large Current Account deficit - and evidence the Chinese are starting to diversify away from investing in the US.
- Falling Growth rates - partly due to slump in housing market see: Is Us Economy heading towards Recession?
- Rising Inflation, despite falling growth rates, US inflation is remaining persistently high - close to 4%
- Fall in Confidence in US economy