U.S. Dollar Heads for Third Annual Decline Versus Euro and Yen

http://quote.bloomberg.com/apps/news?pid=10000006&sid=ashm7rskzyHU&refer=home

Dec. 31 (Bloomberg) -- The dollar headed for a third annual decline against the euro and the yen on speculation overseas demand for U.S. financial assets is waning as U.S. current account and budget deficits widen to records.

Speculation U.S. officials are seeking a weaker currency to offset those shortfalls helped push down the dollar all but one of the past 15 weeks against a basket of its six major counterparts. The dollar fell to a record versus the euro yesterday after an industry report showed business and employment in the Chicago area declined.

``As we move into 2005, the change in the date isn't going to alter the fundamental question over the ability of the U.S. to fund its deficits,'' said Thomas O'Malley, head of global currency portfolio management in San Francisco at Barclays Global Investors, with more than $1 trillion in assets. ``We're going to see continued dollar depreciation.'' (emphasis mine)

<snip>

The U.S. currency may weaken to $1.40 per euro and 100 yen in first half of next year, O'Malley said.

...more...

He will stop when the $ is all gone!

And bu$h will stop when all the money is gone--into the hands of Daddy's friends!

:grr:
dbt

that the chimp administration is so set in destroying America. when it's done it's done. but the bushites think the economy is great. how can these people be so dumb?

Bill Clinton!



Georgie Porgie, I feel your pain.

do they know something we don't know? Or irrational exuberance once again taking sway of investors? Would seem to me that this suggests some serious problems on the horizon (per the "ability of the US to fund its deficits".... isn't that code speak for possibility of default?) Yikes.

FLAT-LINE and massive GORGE


peace