Reply #29: I wish McFadden had more clout within our Fed [View All]

[UpInArms]

'cause this wretched piece of shit has caused a definite fall in the dollar (INO is not working correctly, but as of 30 minutes ago the dollar was at 85.12

http://www.forbes.com/home_europe/newswire/2004/02/11/rtr1255790.html

Dollar drops on Greenspan current account remark

CHICAGO, Feb 11 (Reuters) - The dollar fell against the euro on Wednesday after Federal Reserve Chairman Alan Greenspan said the U.S. currency's decline should help narrow the gaping U.S. current account gap.

The Fed chief, in his semi-annual report on monetary policy to the U.S. House of Representatives Financial Services Committee, said the economy has turned the corner to vigorous growth but policymakers can be patient about raising interest rates.

It was his comment about the dollar's impact on the current account gap, however, that sent the euro to a fresh session high against the dollar and sterling to a new 11-year high.

A weaker dollar makes exports cheaper and imports more expensive, which should narrow the U.S. trade deficit, a major component of the current account.

"That is the most direct comment that I've seen Greenspan make in a very long time," said Bob Priore, desk manager at Carr Futures in Chicago. "It takes the place of any G7 statement. This will force the hand of the European community to tell us what they really think."

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