Is the US Dollar in free fall?
For the complete report from MoneyWeek click on this link
Ben Bernanke wants a strong dollar. No really. He does. The chief of the Federal Reserve said so yesterday. He reckons that the central bank's commitment to "maximum employment and price stability… together with the underlying strengths of the US economy, will help ensure that the dollar is strong and a source of global financial stability." Of course not. Bernanke's words sent the dollar to its lowest point in the past 15 months, while gold and stocks hit fresh highs. But how much further can the US currency fall? And what he's doing says that he's very much in favour of a weak dollar. Because while many investors are increasingly focusing on the threat of inflation and hopes of economic growth, the Fed chairman is keen to talk down any expectations that interest rates are going to rise in the near future.
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