Help power Marketplace this winter when you support the show today. Donate Now!

U.S. currency continues to weaken

Stephen Beard Sep 10, 2007
HTML EMBED:
COPY

U.S. currency continues to weaken

Stephen Beard Sep 10, 2007
HTML EMBED:
COPY

TEXT OF STORY

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.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.