The dollar continues to weaken against major currencies and foreign exchange experts do not expect that trend to reverse. The latest blow to the US currency came from a senior Chinese politician who suggested that Beijing should diversify its forex reserves away from the dollar and into strengthening currencies, like the euro.
Those comments helped push the euro up to a new record - above $1.47 - its biggest one day gain in a year. At the same time one UK pound was worth more than $2.10. Some analysts have predicted the euro hitting $1.50 in the coming months and said that would be of grave concern to euro zone policymakers.
As for the dollar, financial adviser Martin Hennecke is pessimistic about its future worth, He said: "If the sub-prime crisis really worsens very fast in the United States, it's also possible to see a short term correction, especially in basic matters and oil. But they (oil prices) will surely be much, much higher in the long term, and there will possibly be no US dollar around anymore then."
The dollar will fall further if the US Federal Reserve policymakers under chairman Ben Bernanke lowers interest rates again. Expert also think there a limited chance of an intervention by either the European Central Bank alone - or with other banks - to support the dollar in the next 12 months.
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