There goes the dollar by Claudia Sonea

The American currency is slipping and it becomes weaker against the other currencies each day. On Wednesday it got to record lows against the euro and due to the increasing odds of a new US interest rate cut. The euro got to 1.4725 dollars in earlier trading and ended to 1.4645 dollars. In the recent months the dollar lost ground against most foreign currencies because of fears of slowing US economic growth and the Fed that cut interest rates in an attempt to revive the economy. Also, the Commerce Department report of US sales retail showing a lackluster gain of 0.2 percent in October lead to the weakening of the dollar. However, a separate government survey showed wholesale prices in the United States edged up 0.1 percent in October as a result of a fall in energy prices offsetting the rising cost of food. A measure of inflation at the wholesale level is the producer price index (PPI) that showed a modest 0.1 percent rise, lower than Wall Street expectations of 0.3 percent. Traders say that these recent data will eventually lead to a new Fed rate cut. Nevertheless that might only switch investors' interest towards countries that have higher interest rates. David Rodriguez, a currency analyst at Forex Capital Markets, stated that traders are betting on a 72 percent chance for Fed to cut interest rates by 25 basis points at its upcoming meeting in December. If the dollar slipped against the Swiss currency, it can be regarded as good news that it gained ground against the pound that dipped to 2.0514 dollars and the yen. At this point no one can bet on a 100 percent chance of what will happen. Therefore stay connected and keep in touch with the latest changes.

related story: http://uk.news.yahoo.com/afp/20071114/tbs-forex-us-8cc5291_1.html

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

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.