Shrinking Dollar -- Growing Euro.

Over the fit 12-month period ending July 2003, the U.S. horse has slid approximately 15% in international value against the Euro (Reuters Investor).

Now that the Iraq war is supposedly everyplace, the food market value of the U.S. Dollar in comparison to the Euro throughout the last half of 2003 whitethorn solidify the Euros dominance over the U.S. Dollar in the international investment community.

The United States dollars continued devaluation against the Euro, may continue for some time. However, as consumer confidence increases, like it has over the recent quarter, it may help to turn this decline virtually for the US Dollar (Martens). Federal Reserve Chairperson Alan Greenspan in a March 2002 speech pointed out that as unusual investment in the US has been increasing since the mid 1990s, investors bequeath become wary about the soaring deficits in the relief of payments. Simply put, as foreign companies were fueling the U.S. capital rootage market over the past few years, the U.S. is now direct more interest payments and dividends abroad and becoming increasingly myrmecophilous on external money. In addition, more international fiscal transactions, previously monopolised by the U.S. Dollar currency, are now macrocosm made in the Euro. A true concern that the U.S.



may have, with its long-standing romance with oil, is that OPEC and the international oil selling community exit follow this lead and also switch to the Euro (Clark). For example, not find in the sceptical British, the Japanese, Chinese and other overseas investors may very well decide in the future that they choose to deal in the Euro which would contribute to a shift in preferred currency for oil and raw materials (Martens).

One certain value to a strengthening Euro is that it allows for U.S. goods to be exported at more well-heeled prices to those countries using...

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