The dollar is being buffeted by record current account and fiscal
deficits, less appetite among foreign investors for U.S. assets and
comments from Federal Reserve and Treasury officials suggesting they
favor a weaker dollar, said James McCormick, head of currency strategy
at Lehman Brothers Holdings Inc.
From Bloomberg, 12/30/04:
http://www.bloomberg.com/apps/news?pid=10000177&sid=acQJlUDPu4Gw&refer=market_insight
Dollar Set for Longest Decline Since Louvre Accord (Update6)
(Bloomberg) --
The dollar is set for the longest annual losing streak since 1987,
when Group of Seven finance ministers met in Paris to end a three-year
slide in the currency.
The Federal Reserve's Trade-Weighted Major Currency Dollar Index has
retreated 6.2 percent this year after dropping in the previous two.
The index began a three-year drop in 1985, when G-7 ministers met at
the Plaza Hotel in New York and agreed a weaker dollar was
``desirable.''
The group met at the Louvre in 1987 and decided a further drop ``could
damage'' world growth.
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And Li'l Georgie sez now ya see it now ya don't.
Harry
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