The dollar suffered major slides on Thursday, due to poor business in U.S. The Euro continues to hit the list at the top and it again rose 0.7 percent against the dollar to $ 1.3247. The sterling, the pound, and the yen are also leading against the dollar. A report stated that inflation benchmark in U.S was held steady in October at 2.4% year to year. Data suggested further inflation-fighting interest rate rises which could support the dollar, were even less likely to be needed. Since, U.S dollar is declining day by day; the factor of risk aversion in fellow traders is increasing rapidly. The risk of short-term dollar weakness may now be greatest against the yen. In my opinion, eventually from the past 10 days, the U.S dollar is declining rapidly. Now the question is does the U.S dollar gains its stability in future? The capricious markets know the answer better than we, the people.
The dollar fell sharply against other currencies, touching a fresh 20-month low vs. the euro and 14-year low vs. the British pound, after a key U.S. manufacturing survey came in well below expectations. The Institute of Supply Management's manufacturing index fell to 49.5% in November from 51.2% in October. The decline was unexpected. Readings below 50 indicate contraction. Manufacturing conditions in the US as a whole contracted for the very first time since April 2003. The euro was last up 0.5% at $1.3303, while the dollar was up 0.1% at 115.78 yen. As long as this kind of thing kkep on hitting the U.S economy, things are going to get even bitter... just take a look at what's gonna happen in the next weeks with the democrats "fighting" Bush...
Oh Thanks for your reply. Its sound perfect. The dollar is declining day by day. And it seems that the U.S dollar doesnt want to see some good days ahead. If this skidding continues, the U.S dollar will surely lose its value thus affecting the U.S economy rate. Lets see will the U.S dollar marks its stability again the future