Dollar Slides After Greenspan Comments [View All]

But we don't need to worry. * is president and the rapture will come soon.

NEW YORK (Reuters) - The dollar slid on Friday after Federal Reserve Chairman Alan Greenspan said foreign demand for U.S. assets, which has financed the country's massive current account deficit and propped up the dollar, would eventually fall.


In a speech at a European bankers' conference in Frankfurt, Greenspan said: "It seems persuasive that, given the size of the U.S. current account deficit, a diminished appetite for adding to dollar balances must occur at some point."


Greenspan also said the United States should help correct trade imbalances by cutting its record budget deficit or face painful consequences.


"Greenspan was far less upbeat in his assessment of the U.S. current account deficit," said Michael Woolfolk, senior currency strategist at Bank of New York.

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