Wednesday, March 09, 2005

interest rate hikes may not help the dollar

Economists are leaning toward the idea that even measured rate hikes are not going to help appreciate the U.S. dollar. The trade deficit in the U.S. is the leading indicator for the dollar's woes. The U.S. economy is still projected to grow at a 4 percent clip in 2005. The dollar needs some good news from home and thus far, recently this hasn't happened. Put this against good economic news coming from Japan and Germany, the dollar couldn't gain any upside momentum.

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