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What about the buck?

The U.S. Dollar Index is in a free-fall, especially now that the Fed funds rate has been pushed to a nudge above zero. The chart is butt-ugly.

Reverting to the mean, big time.Source:

Reverting to the mean, big time.

Keep in mind there was a mad rush back into the dollar after the markets started crashing in September, so what’s really happening is the dollar is getting back to where it was last summer — though the fact that monetary policy is even looser than it was a few months back suggests even further declines.

A low buck is good for equipment Cat makes in the U.S. and ships overseas, but I suspect it’s less helpful for foreign-made machinery that stays beyond U.S. borders.

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Tom Mangan posted at 7:55 am December 17th, 2008 |

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