The Dollar’s Decline

Over the past few weeks, the United States dollar has really taken a dive and the newest news that has been coming out definitely doesn’t help the prospects of the greenback.

The newest news is that the Canadian dollar will be equal to the value of the U.S. dollar and will actually begin to overtake it in the next few months.

The dollar fell to the lowest it has been in the past year while other currencies were increasing. The US dollar fell to 1.4962 per 1 Euro this morning in London. It was $1.4925 in New York during trading yesterday. The dollar even fell to the lowest it has traded in Swiss francs since July 2008.

“Negative dollar sentiment as a result of ongoing risk appetite is still very much in place,” said Ray Attrill, global research director at Forecast Ltd. in Sydney. “Anticipation of good results in the financial sector has been one of the factors driving U.S. stocks.”

The dollar fell against 14 of its 16 major counterparts as the Federal Reserve is expected to report U.S. industrial output rose 0.2 percent in September after gaining 0.8 percent in August, according to the median estimate of 75 economists in a Bloomberg News survey. The data is due tomorrow.

According to Daisuke Uno from Sumitomo Mitsui, from Japan’s third largest bank, “The U.S. economy will deteriorate into 2011 as the effects of excess consumption and the financial bubble linger. The dollar’s fall won’t stop until there is a change to the global currency system.”

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