Testing time for dollar

Testing time for dollar

The US dollar is heading for a precipitous fall against the major currencies, namely the yen and the euro. Since 2002, the dollar has fallen 23.6% in nominal terms and 21.4% in real terms...

The broad-based dollar weakness is a reflection of investors’ growing pessimism that the US economy is sinking into a deep recession and that the financial market remains under considerable stress...

The drastic fall in the dollar, a severe economic contraction, sharp stock market correction and loss of investor confidence in the dollar would push the world economy to the edge of a deep recession...