Tuesday, February 22, 2005

dollar down

The dollar had a tough day. It went down againt the yen and especially against the euro. This might be the sign of more to come. The Central Banks of South Korea and Russia are just now starting to rev up their U.S. Dollar selling. They both are converting those once dollar assets into euros. Read more on this.

I'm not sure what Japan is thinking of doing. They really don't want their currency to appreciate too much because that will hurt their export driven economy. I think however that the dollar will lose value against the yen and Japan probably will sell dollars to keep the floodgates from opening too wide.




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