Foreign investors move from dollar

Stephen Beard Dec 16, 2008
HTML EMBED:
COPY

Foreign investors move from dollar

Stephen Beard Dec 16, 2008
HTML EMBED:
COPY

TEXT OF STORY

Steve Chiotakis: Overseas, they’re keeping a close eye. While reaction stateside may be, “How low can it go?” In Europe, it’s much ado about the dollar, and how it’s trading against the Euro and other foreign currencies. From London, Stephen Beard reports.


Stephen Beard: In recent days, foreign investors have been moving out of the greenback. They assume the Fed will cut short-term interest rates again today. And that will mean that money deposited in the U.S. will earn a derisory return — a half of 1 percent or less. And the dollar doesn’t now seem quite as attractive a place for foreigners to put their money.

Professor Ian Marsh at the Cass Business School:

Ian Marsh: People are just looking for safety. America was the safe place to go, it probably is no longer because there’s big uncertainty over what the Fed will do in the future.

Once the Fed has cut interest rates close to zero, it may have to resort to all sorts of unconventional measures to pump up the money supply and pull the U.S. economy out of recession.

In London, this is Stephen Beard for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.

Latest Episodes From Our Shows

7:59 AM PDT
9:34
3:00 AM PDT
7:54
7:57 AM PDT
1:50
Sep 21, 2021
26:33
Sep 21, 2021
30:05
Sep 21, 2021
3:40
Aug 26, 2021
34:03