It’s “imprudent” for investors to keep their holdings in one currency, Greenspan said. – Bloomberg, Dec 11, 2006′
He expects the dollar to continue declining until the current account deficit is reduced.
Why would Greenspan talk down the dollar? I’m a total novice at this stuff, but a possibility is that he wants to reduce investments into US Treasuries (so the yield will finally go up) and mortgages (to stop all that exotic money funding home loans).