1.8 Billion a day to pay for Bush's McConomy

[LeftHander]

From Rueters...


:snip:


http://biz.yahoo.com/rb/050316/markets_forex_4.html

THis also on the heels of annoucing the largest Trade deficiet ever of 665 billion dollars.

DIVERSIFICATION CONCERNS

The U.S. current account report confirmed deficits are still a problem and overshadowed Tuesday's capital flow report which indicated foreign investors continue to fund the U.S. deficit, analysts said. The U.S. has to attract some $1.8 billion a day to fund the deficit.

"The market was primed for bad news for the dollar. So modest bearish news on the current account doesn't help it," said Steve Englander, chief currency strategist for North America at Barclays Capital in New York.

Concerns over currency diversification by some central banks were another big weight on the greenback, analysts said.

Ukraine's economy minister Serhiy Teriokhin added to the chorus of global voices on the theme when he said on Wednesday he wants to diversify the country's foreign exchange reserves of around $10 billion and that the euro should comprise at least 25 percent of the total. (Additional reporting by John Parry and Jamie McGeever in New York and Natsuko Waki in London)