Commentary ~ January 5, 2004: The American dollar continued
its dramatic drop in 2004, with the greenback reaching a fresh record
low of $1.2695 against the euro and $1.8065 against the pound -
its lowest level since Black Wednesday in September 1992.
This means that it now costs Americans nearly 50 percent more to
visit Europe than it did at the time that Bush "took"
office.
In fact, the US dollar plunged against most of the world's currencies
in 2003, putting in its third-worst performance since it began trading
freely in the 1970s. It was the dollar's second consecutive annual
decline, and many forecasters see a further weakening in 2004.
The Bush Administration is apparently relaxed about the currency's
fall and worries about the country's ballooning current account
deficit weighing on the market.
David Gilmore, a partner at Foreign Exchange Analytics in the UK,
told the Business Times that the dollar could fall as much as 13
percent this year, ending with the euro around US$1.45. That would
put the dollar's value at or close to where it was in 1995, when
it hit its post-1971 low against the German mark.
Way to go Bush. Since you don't get out much, all this probably
does not mean much to you.
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