U.S. currency continues to weaken
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Doug Krizner: The weakness of the U.S. economy has put pressure on the dollar. Currency traders in London are expecting the dollar to decline this week. Stephen Beard reports.
Stephen Beard: The unexpected fall in U.S. payrolls in August makes it very likely the FED will cut interest rates next week.
But lower rates will make the dollar less attractive to foreign investors. It means they'l be able to earn that much more if they put their money into another currency,like the euro. Some analysts reckon the dollar could hit an all-time low against the euro in the next few days.
Currency fund manager Neil Mackinnon:
Neil Mackinnon: The loss of interest rate support, worries about recession, worries about a credit crunch are all starting to combine to weigh on the U.S. currency.
Traders are now waiting for the U.S. retail sales report for August which is out on Friday. That report will show whether the U.S. consumer is flagging in the face of all the talk about recession.
In London, this is Stephen Beard for Marketplace.