The dollar hit a new low by Corina Ciubotaru

It hasn't been that long since the subprime mortgage crisis ended in the U.S. and the country finds itself in yet another financial crisis. The dollar is at its lowest point in history compared to the euro, reaching $1.3914 on Wednesday, and it is also doing badly compared to the British pound, the Swiss franc and the yen. American authorities have announced a decrease in employment rate for August and a cut in interest rates is expected for the first time in four years, by half a point. The European Central Bank has also stopped its annual rise in interest rates due to this problem but it is expected to enforce a quarter-point increase by the end of the year. A weak dollar means American exports will be cheaper and imports will be more expensive. An increase in oil prices to more than $80 is yet another concerning factor for market watchers and may also lead to rising prices in all areas. The trade-weighted dollar index was also at its strongest low 79.319 on Wednesday, but rose to 79.530 today. After the mortgage problem disrupted the American economy, everyone expected things to be bad for a while but thankfully, the situation could have been worse. Maybe the pace of economic growth is slowing, maybe it's a hurdle the economy will overcome soon, what's certain is that steps are being taken and the economy of the United States will once again be healthy and a bit more wise after these events.

related story: http://news.yahoo.com/s/ap/20070912/ap_on_bi_ge/dollar;_ylt=AnWroC1lw9kB8SFaViEVfpGs0NUE

by Corina Ciubotaru for PocketNews (http://pocketnews.tv)

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