No End in Sight to Dollar's Descent

Sterling actuated with its moreover high level against the dollar yesterday since its ejection humiliating starting from Europe 'mechanism of exchange of S 11 years ago as the American currency wrote the New Year's Day facing a replaced wave of the sale.

Weekend the comments by an official elder federal reservation by announcing that the central bank of the USA was suitable for stick to its policy of interest rates fine funds started the rout of the dollar.

The tradesmen emptied banknote after Ben Bernanke, a member of the council of federal reservation, said a meeting of weekend of the American economists that the EDF had luxury to be patient .

Mr. Bernanke of the 'comments of S.A. sent the dollar to a fresh fall record of $1.2695 against the euro and $1.8065 against book - its lower level since black Wednesday in September 1992.

The federal reservation reduced costs of credit to a 54 years bottom of 1% last June. The American authorities seem to be in a hurry none to follow the example of the central banks to Great Britain and Australia, which already started to raise rates in answer to improve the global growth.

We have an economy to rise completely well, but the EDF does not show any intention to increase rates, Hans says Guenter Redeker, the strategist of foreign currencies as a chief at BNP Paribas in London.

Of low level of the American rates the call of the investment in the dollar reduced to one moment when the USA must attract increasing sums of finished investment of seas to place its adverse balance dese payments. If the EDF does not see a weak dollar like inflationary threat, it has little reason to raise interest rates and the tendency of the weakness of the dollar will continue, Shahab known as Jalinoos, an elder strategist of currency to ABN Amro.

The analysts said that the banknote the 'decline of S were likely to continue, with the authorities of the USA apparently slackened about the currency 'of the fall and the concerns for S about the country of the 's mounting in balloon the adverse balance dese payments weighing on the market.

There is a general feeling in the market that there is to stop the dollar little 'falls of S, Adam says Cole, an elder strategist of currency at Cr�dit Agricole Indosuez.

But the damage which the euro going up inflicts on exports causes the concern growing in capitals of Europe 'of S.

The German civils servant want that the Ministers for Finance of the seven principal economies discuss the dollar when they meet in Florida inside early - February, sources of G7 indicated. The analysts said that the key with the meeting would be the position of Washington, which up to now kept the mom on the weak dollar.

Dollar 'falls of S.A. ordered up to now, but if it crosses levels of customer support to approximately $1.28, it could easily accelerate, pastors known as of Nick, a strategist of currency at Commerzbank.

If it starts to strike the current obligation or bond markets, the attitude of the USA would light, tenth of dollar it was added.

Mr. Bernanke said that it was an error to look at only the dollar 'considerable reduction in S against the euro, adding that the banknote 'the fall of S against a broad basket of the currencies had been much smaller. The risk of has dollar crisis was low, it maintained.

While the European companies which depend on exports towards the USA suffer from the raised euro, they face better than envisaged, said a spokesperson for Germany the 'association of S for exporters and the foreign trade, Andr� Schwarz.

Situation is not as dramatic, it indicated, noting as the demand of the European goods is remained keen.