Thursday, August 13, 2009

Dollar Deficit

from WSJ:

NEW YORK -- The dollar remains down against virtually all of its major rivals Thursday, although trade is volatile in thin summer conditions.

The dollar is weak on two fronts: it's traditional inverse relationship with stocks throughout the financial crisis and on fundamental economic data.

Rising equities are keeping the euro, pound and commodity-linked currencies supported after they earlier advanced to intraday highs.

Higher stocks encourage traders to sell the low-yielding dollar -- particularly after the Federal Open Market Committee on Wednesday pledged to keep interest rates low for a while