US Dollar in 2004: highs and lows

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The US Dollar experienced a strong devaluation towards the end of 2004, as a re-elected George W Bush to the Whitehouse made no pledges to stregthen the US Dollar in international markets. Jon Snow also emphasised that a devalued US dollar helped tackle the US trade deficit. The market response has been a general reluctance to buy into the devalued US currency.

Although the weakened dollar may allow for greater export competitiveness abroad, EU countries, which are have export-driven economies, have voiced concerns at the weakness of the USD vs the euro, and are expected to bring the situation to the fore of G7 discussions in February 2005.