Today we learn that the dollar hits a new low against foreign currencies and is approaching the $1.30 mark against the Euro:
As concerns grew about the enormous US current account deficit - the difference between America's import and export of goods and services - the dollar fell as low as $1.29 to the euro in morning trading.
"The US has a current account deficit, a budget deficit and a president who appears unconcerned about dollar weakness," said Shahab Jalinoos, a senior currency strategist at ABN Amro. "No one can see any reason to buy the dollar at the moment."
The latest weakening of the greenback began last Wednesday amid scepticism that George Bush, who has won another four years in the White House, will do much to tame the towering US deficits.
The US budget deficit is about $427bn, or 3.7% of gross domestic product, while its current account - the broadest measure of trade - widened to a record $166.1bn in the second quarter.
But it is not just a decline but a free fall, spun euphemistically as a "confirmed, long-term downtrend."
Read More