I’m Freefallin’

So the song goes… and the above title could also be the anthem of the US dollar, as yesterday, and again today it set new record lows against the euro.  It is now trading at $1.52 per euro (and that is the INTERBANK rate, not the retail rate!).  I had foreseen this happening last August, when the dollar was setting new record lows at that time in the neighborhood of $1.38-1.40/euro.  Those rates sound like bargains today.

For those waiting for a rebound in the dollar’s strength, the good news is that it will happen; the bad news is that it won’t be anytime soon.  What with a stagnant economy, record oil prices, a Fed chairman who continue to be ready to drop interest rates, and our humongous trade deficit, relief is nowhere on the immediate horizon.

Fortunately for moi, I now have a fair number of hard assets in euros, and so the impact is minor.  Now… if I could only give up eating while I’m in Paris! 

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