Behind the Dollar's Woes

Many factors, including the threat of deeper rate cuts at home and stronger economic performance elsewhere, are piling up against the U.S. dollar

Just about everyone thinks European currencies and the Japanese yen are hugely overvalued against the U.S. dollar at present levels. Goldman Sachs (GS), for instance, says its "fair value" measure for the dollar against the euro is $1.21, not today's $1.56. But many analysts now think that in the next few weeks the dollar could be hit with yet more declines.

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