RatcliffeBlog - Mitch Thinking Out Loud

Strong dollar fading

Strong dollar fading

The Bush Administration recently stated it will support a strong dollar, but continuing worries about North Korea, Iraq and generally about the economy have taken the dollar to new six-week lows compared to the bedraggled Japanese Yen.

Fortunately for the Bushies, the Japanese want to weaken the Yen to keep exports strong. But with so little room for the Fed to move now (with rates at 1.5 percent now) and a pending disaster in the consumer economy, the strong dollar policy will be sorely tested in 2003.