The never ending saga of the dollar like the crude price has its causes and effects in anything and everything the real cause for both cases is SPECULATION pure and simple... the dollar continues on a downward trend and has now slumped to a record low against the euro after Chinese officials signaled plans to diversify the nation's $1.43 trillion of foreign-exchange reserves in response to a falling U.S. currency.
The Chinese will favor stronger currencies over weaker ones, and will readjust accordingly...The dollar fell against all 16 of the most-active currencies, and if this goes on as further pressure is applied on the dollar them most likely THE DOLLAR WILL LOOSE ITS STATUS AS THE WORLD CURRENCY...
The U.S. currency slumped to $1.4666 per euro, the lowest since the 13-nation currency debuted in January 1999...The dollar fell to an all-time low against the synthetic euro, a theoretical value that estimates where the currency would have traded before its inception. The prior record was $1.4557 set in 1992.
According to our WorldWatch analyst the U.S. currency may fall to $1.50 against the euro...
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