Dollar Falls To Record Lows

The dollar has fallen to record lows against the Euro in trading Friday. The 13 nation European currency is now worth 1.4966 U. S. dollars. Speculation is that this is being brought about due to the credit crisis in U.S. markets, and that another credit rate cut will occur.

While the expected rate cuts are a plus, this certainly does not bode well for the dollar and the U. S. economy in the long run. James Hughes, an analyst at CMC markets says" once again the message is that with further rate cuts expected from the Fed, the dollar is struggling to find any serious supporters. "

The Euro, the British pound and other currencies have been rising against the dollar since August . The underlying concern is the financial disaster looming in the subprime credit crisis. With oil at $98 per barrel , an unstable economy , an enormously expensive war in Iraq, and a retiring baby boomer genaration set to retire, where does that leave us economically?