“CMC Markets’ chief analyst Ashraf Laidi said the US dollar’s latest decline should now be raising alarm for the US Treasury and the Federal Reserve as the greenback’s trade-weighted index (as measured against six currencies) has now fallen to below the 80.40 level, its lowest level since 1992.
He said previously, the yen’s continued weakening had acted as a major stabilizer of the US dollar when the US currency hit all-time lows against the euro and multi-decade lows against the Australian dollar, Canadian dollar, sterling and New Zealand dollar.
‘But as the periodic revelations of sub-prime troubles boost the yen on falling risk appetite, the US dollar’s decline becomes increasingly pervasive,’ Laidi said.”
I could be wrong but to me this looks dangerous. I would give anything to be a fly on the wall sitting in those meetings at the US Treasury and the Federal Reserve. This subprme thing is really turning out to be something don’t you think!
