Euro hits new high against U.S. dollar...

[Janett_Reno]

http://news.yahoo.com/s/ap/dollar;_y...4ZzrWmMTQDW7oF


"The dollar is a basket case," said Peter Schiff, president of Euro Pacific Capital Inc. "We are going to pay the piper for years of having the underlying fundamentals of our economy disintegrate beneath our feet."

Given the state of the U.S. economy, he said, the dollar could continue to fall in the coming years against the euro, to $2.50 or even $3.

In late New York trading, the pound was changing hands at $2.0267, up from $2.0151 late Monday in New York. The dollar also fell against the Japanese currency, drifting to 122.03 yen from 123.33 yen.

Also Tuesday, a speech by U.S. Federal Reserve Chairman Ben Bernanke in Cambridge, Mass., offered little insight into the central bank's next move, and instead focused on how the Fed makes its inflation-fighting decisions.
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[dude1394]

What is the "state" of the US economy? Let's find some metrics to measure it since all of the other numbers are up.

[Mavdog]

the article does a horrible job explaining what is happening to the dollar.

unless bernarke and the board vote an increase in the funds interest rate, with overseas interest rates rising there will be continued softness in the dollar in favor of those currencies of countries who are paying a higher return.

the value of the dollar may be just where the current administration wants: it is helping with exports being competitive on price while diminishing demand for imports that cost more, and it is keeping the payments on our growing debt lower as well.

a cheap dollar is not in itself a bad thing.