U.S. Dollar Holders Getting Decapitated
September 27th, 2007WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
The U.S. Dollar Index is below 78.20 now.
This morning, bond traders have priced in a 90% chance of ANOTHER Fed rate cut in October. My guess is that the Fed knows about that ARM reset chart I referenced yesterday.
Goldbugs, hope that some central bank doesn’t dump metal and piss on our parade.
Via: IHT / Bloomberg:
The dollar fell to a record low against the euro Tuesday as declines in consumer confidence and home resales fanned expectations that the Federal Reserve would cut borrowing costs for a second time this year.
The U.S. currency weakened to a 15-year low against a basket of six major peers on worries that another decrease in lending rates would make U.S. assets less attractive to international investors. The Fed cut its target overnight rate by a half-percentage point last week to prevent the housing slowdown from weakening the U.S. economy.
