Dollar May Drop for Eighth Week as Central Banks Permit Slide
/The dollar may drop for an eighth week and set a
record low against the euro after the world's major central banks
signaled they will allow the currency to extend its slide, a Bloomberg
survey indicates. Sixty-eight percent of the 59 strategists, investors
and traders polled on Nov. 26 from Tokyo to New York advised selling
the dollar against the euro. Participants also predicted the U.S.
currency will weaken against the yen, British pound, Swiss franc and
Australian dollar. The dollar has lost as much as 3 cents against the
euro since Federal Reserve Chairman Alan Greenspan said on Nov. 19 that
foreigners will tire of financing the record U.S. current account
deficit. He was joined on Nov. 25 by Bank of England Chief Economist
Charles Bean, who said in a speech in Colchester, England, that
international investors are unlikely to keep buying American assets
indefinitely, triggering a ``possibly substantial'' drop in the dollar.
[more]
