Story Comments
Posted by: engineer 1 year, 6 months ago
This page is a permanent archive of the comment below and its replies.
To view this comment in the context of the full discussion for the story, use this link.
-
Neutral
engineer1 year, 6 months ago
This comment is below the standard viewing threshold View It »
Only a month ago the dollar slumped to an all-time low against the euro and the yen.
But now, the US currency has started to strengthen - with the markets talking about a "turning point". On Wednesday, the dollar reached a six-week high against the European single currency, closing in on $1.53. The dollar climbed to a 10-week peak against the pound.
But does the dollar remain in danger? Could "the rope slip" and the world's pivotal currency still go into freefall? That would plunge America beyond recession and into depression - as inflation ballooned amid soaring import costs, forcing the Federal Reserve to raise rates in the teeth of shuddering slowdown.
A plummeting US currency would also cause chaos globally, as central banks sought to protect the value of their reserves. And after the inevitable overshoot, the currency would snap back, sending financial markets into a tailspin, and threatening a fully-blown global slump.
Reply -
loading ...
People Who Liked This Comment (1)
baddad59People Who Didn't Like This Comment (0)
No one voted this comment negatively.
Post Reply
You are not signed in to Propeller.com. Please sign in to post a reply.