Friday, November 9, 2007

Why is the dollar falling?

From Business Week:
This economic strength or weakness is reflected in yields on bonds and interest rates. Right now, Keith Hembre, chief economist at First American Funds, says the bond markets seem to expect many more interest rate cuts from the Federal Reserve in the next several months. That means the markets also are expecting a deep slowdown in the U.S. So it's no surprise that investors are moving money out of dollars and into other currencies that will give them better returns.

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