Dollar Diving

The US dollar has just fallen to $1.26 against the Euro. The last time the dollar was this weak against the Euro was 11 months ago. The dollar had slipped to $1.2590 in August of 2005, but since then it had strengthened significantly. Just two months ago today, the dollar opened at $1.1884. This means that the dollar has lost 7 and a half cents in just 2 months.

What is bothering me is that it went right through the August level of $1.2590 effortlessly. I expected $1.26 to provide some resistance (as did the analysts), but currently we are at $1.2617 heading for $1.2655 and beyond. Where this is going to end, no one knows.

Good for US exports though.