Dollar Continues to Drop in Value Against World Currencies
August 6, 2007
The dollar’s value has fallen to the lowest point in four months after another day of poor trading worldwide, causing further concerns about the condition of the US economy.
Trade today witnessed the dollar slope against the euro and the yen, continuing to struggle as a worldwide currency, after continuing economic problems, and a reliance on imports continued to bog down the dollar.
Trade on all major world currency exchanges saw the dollar weaken yet again against the backdrop of strengthening yen, euro and pound, reflecting the truly unique situation facing the world’s largest economy in a global context.
With most other major economies enjoying sustained growth, and even the grumblings of inflation , the US economy is lagging way behind, and has remained sloth-like in its poor growth over recent years.
And with the international trade deficit increasing, and continued housing market blunders and stagnation, the dollar has been crippled against all other major world currencies as foreign US investment reaches unparalleled lows.
The Federal Reserve has reversed global economic trends with interest rate cuts in order to boost housing and inject some form of life into business, in an attempt to bring the value of the US economy back on par with its worldwide contemporaries.
However, deep rooted economic problems are blamed for holding back the US economy, with many experts predicting we are yet to see the worst of the country’s economic woes.
Market analysts expect the Federal Reserve to direct some action towards readdressing the situation, whilst addressing the situation of interest rate settling.
“If this is not delivered, it is likely that we see further selling pressure for the dollar as the market analyses the Fed as falling behind the curve, failing to halt a financial problem and probably even inducing a harsher economic slowdown.”