Dollar Reaches Breaking Point as Banks Shift...

This may be good news if you are an exporter, but for the rest of us, probably not.

From Bloomberg

"Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades." ...

"according to data compiled by Bloomberg. Nations reporting currency breakdowns put 63 percent of the new cash into euros and yen in April, May and June," ...

"The dollar’s 37 percent share of new reserves fell from about a 63 percent average since 1999. Englander concluded in a report that the trend “accelerated” in the third quarter. He said in an interview that “for the next couple of months, the forces are still in place” for continued diversification.

America’s currency has been under siege as the Treasury sells a record amount of debt to finance a budget deficit that totaled $1.4 trillion in fiscal 2009 ended Sept. 30."

Story HERE

Comments: 3

Richard P. Oct 12, 2009, 1:33pm EDT

That's capitalism for you, so don't complain. The dollar or anhything else that was once on top like anything else in the market place locale or international can fall to the bottom, go out of favor, become obselet. It is the way of world, countries, the cycle of our existince. Do you think that the Yankee will win the world series every year or the allas will always be America's football team, no I deon't thnk so, therefore adjust to the change because the only constant is change, that why currency is moving to gold, at least until it is removed from the market. Rules adjust but the game goes on.