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US Dollar Continues to Weaken in July 2007 - China to blam again
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While Canada's dollar is nearing par with the USD (although it probably won't make it), America is apparently touting a stronger dollar as well. Why, nobody is sure, since all indicators point to a continuation of its weak trends. U.S. Treasury Secretary Henry Paulson advocates that a strong dollar is in the U.S. interest and currency values should be set in free and open markets.
The U.S. dollar's value has declined for five consecutive weeks, battered by turmoil in U.S. credit markets due to the downgraded hosing industry and rising debt. Although the dollar's depressed value has boosted U.S. exports, the Fed has expressed concerns that its lower exchange value may be adding inflationary pressures.
Paulson, along with all Americans less Chinese spies, are urging China to allow its yuan currency to rise in value against the dollar to ease growing trade imbalances. Chine refuses to revaluate its currency in fear exports will decline and slow the economy. The converse problem is an overheated economy that will stretch beyond its means.
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Jul 25, 2007, 1:11 PM
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