Constant Worry Pick up’s Again on US Dollar

The US dollar is somewhat in bad condition. The dollar touched a new record low (1.4160) against the euro and sold off more than a cent against the Australian and New Zealand dollars. Given that consumer spending accounts for two-thirds of US economic activity, it is likely excepted by the excerpts that the US economy will continue to falter over the next 12 to 18 months as consumers retrench and rebuild personal wealth through investments and paying off debt rather than spending.

The markets are focused on the weakness in the US and what this means is that the US economy may be in rapid drop. The weak data from last week of September ‘07, and a 4.9% decline in August ’07, it is anticipated that the Federal Reserve will lower interest rates again in October, and as long as US interest rates are expected to fall further, relative to interest rates elsewhere, the US dollar will continue to fall.