How Low Will The Dollar Go?

With the euro hitting highs against the dollar nearly every day, investors are wondering how low the dollar could go. Quite a few analysts think that the greenback will end up around $1.40 per euro by yearend 2005, vs. the current rate of around $1.36. But with the Bush Administration seemingly welcoming the dollar's fall and little sign of a serious effort to curb the gaping U.S. current account or budget deficits, some market participants are talking about more extreme scenarios. Exchange rates of $1.70 or $1.80 per euro no longer seem out of the question.

Edited by Patricia Kranz

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