The dollar is sliping again by Claudia Sonea

The last few months of problems that hit US has caused an increasing weakinning of the dollar against most currencies, especially in front of the euro that hit record highs. Therefore the G-7 is expected to take some measures in order to help slowing economy. However, most traders think that the G7 finance ministers and central bankers in Washington meeting will not change too many things. Group of Seven denotes the meeting of the finance ministers from the group of seven industrialized nations of the world formed by the United States, Japan, Germany, France, Britain, Italy and Canada. There is another group more important called G 8 and refers to the meeting of eight state presidents, the seven from G7 to which Russia is added. They meet every year to discuss economic policy. The US situation is presenting pretty bad, euro valuing a record of 1,430 dollars. Also it fell against Japanese currency. Ernest-Antoine Seilliere, head of the European employers association BusinessEurope appeals to political intervention in order to stop euro's further growing. Industrial leaders say that despite exports problem can amplify. According to Manufacturers Alliance/MAPI a soft dollar is one of the risks for global economy. From the up-coming meeting of G-7 analysts have little expectations. Mitul Kotecha, an economist with Calyon stated that are big chances that after the meeting the dollars to resume its weak course. Also David Rodriguez at Forex Capital Markets stated that traders have no expectation from G-7, but he adds that any reference to the Japanese yen or the US dollar could benefit them. The biggest problem that draws back the dollar is the housing slump and it's getting worst everyday due to the sub-prime home loan segment. Will there be a change or the dollar will continue to slip? Surf on and stay intouch to see where everything is heading.

related story: http://uk.news.yahoo.com/afp/20071018/tbs-forex-us-8cc5291_1.html

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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