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Dollar promises
Global policy makers are singing the same old song as traders keep pounding the greenback.
November 22, 2004: 8:47 AM EST

NEW YORK (CNN/Money) - When it comes to the dollar, at least we can say that global policymakers are delivering what they promised.

Ahead of this past weekend's G-20 meeting, where the world's big money policy folks met, officials said there would be no announcements on the dollar and certainly no new promises to intervene in currency markets to stop the dollar from falling.

True to their word, there was none.

There was a reference to Asian currencies needing to be more flexible, in other words: "China -- delink your currency from the dollar so the rest of the world can compete with you," and "Japan -- stop intervening so much to keep the yen from rising and slowing down your exports."

But that kind of talk has been going on for years and neither China nor Japan have changed their currency strategies one bit. So where does the dollar go from here?

Traders will certainly try to push it to new record lows against the euro and yen. The more interesting issue may be if stocks can hold their own with a steadily dropping dollar and if bond yields won't be pushed higher, too.  Top of page


Kathleen Hays is economics correspondent for CNN and contributes to Lou Dobbs Tonight.




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