Comments: Return of the $2 pound

I think another factor is that the Chinese look like they are going to revalue the Yuan against the dollar. Although the dollar has fallen spectaclalry against the euro, its trade weighted real exchange rate has only fallen 9% - mainly due to the currency fixing of the asian countries. Release that and much of the trade balancing pressure on the dollar euro exchange rate disappears.

Posted by Giles at February 15, 2004 12:55 AM

How would the dollar fare if the OPEC start selling their oil for euroes.
I s that a likely scenario, especially with escalating attacks on US citizens in Saudi and Iraq.

Posted by KEV at June 25, 2004 11:32 AM