FT.com / Home UK – Dollar falls to nine-year lows — Looks like the slide will continue for years, according to experts.
Middle Eastern investors, including central banks, have been active in the market selling dollars over the past two days, according to traders. There has been speculation for some time that investors in the region would seek to diversify their largely dollar-based wealth as the greenback weakened.
“People are not just looking at simply the next few months for the dollar, they’re looking more broadly at a decline over the next few years,” said Tony Norfield, global head of currency strategy at ABN Amro.
Well, that’s one way to fix that pesky trade imbalance. Make it so that we can’t afford those expensive trinkets from Taiwan. On the bright side, at some point Nike will be able to afford to hire children here. So it’s kind of a win-win.