Friday, September 21, 2007

U.S. Dollar in Free Fall?


The dollar on Thursday fell to its lowest level since 1992 against a basket of six currencies on worries that lower US rates would erode the value of dollar assets.

Former U.S. Federal Reserve chairman Alan Greenspan said it is possible that the euro could replace the U.S. dollar as the reserve currency of choice.

For the first time in nearly 31 years, it look less than one Canadian dollar to buy one U.S. dollar. The loonie, as the Canadian currency is known, broke the greenback.

Also Thursday, the euro broke above $1.40 for the first time.

Venezuelan President Hugo Chavez instructed Petroleos de Venezuela SA, the state oil company, to convert its investment accounts from dollars to euros and Asian currencies to reduce risk.

Iran is demanding foreign energy companies do business in yen and euros.

Kuwait became the first emirate to actually unlink it's currency from the USD in June.

The Russian ruble soared 0.6 percent to an eight-year high against the dollar Wednesday amid heavy dollar selling.

Source: Worldwide News Agencies

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JG: Are the policies of George W. Bush coming home to roost? In 2005 the public debt of the United States was 64.7% of Gross Domestic Product!

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