Are we on a long path to see the Dollar depreciate against gold and silver?
*Bloomberg, by Agnes Lovasz, April 4, 2008
“The dollar will fall in coming years as the U.S. seeks a weak currency to boost exports and cut its trade and current-account deficits, said Paul Chertkow, the former head of currency strategy at Bank of Tokyo-Mitsubishi UFJ Ltd.
The U.S. currency will drop to between 80 and 85 yen this quarter, the lowest level since 1995, Chertkow, who retired this week after a 27-year career in global foreign exchange, said in an interview. It will also fall to $1.65 against the euro and may trade as low as $1.70, he said.
`The dollar will go weaker over time,’ said Chertkow, 60, who correctly predicted the U.S. currency’s appreciation in the 1980s, a forecast he said earned him a reputation as a dollar bull. `The Americans like the weakness of the dollar because it improves the competitive position of the U.S., which is one of the few things going for the U.S. economy. The Americans also have to recognize there has to be weakness in domestic demand.'”
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