US economy weakening, but dollars still in demand


It is one of the seeming incongruities of our time: U.S. stock markets oscillate at 10-year lows; the federal budget deficit will exceed $1 trillion for at least the next two years; and Congress will likely have to raise the national debt ceiling about $13 trillion -- all negative developments for the dollar.

And what's the world clamoring for? More dollars. The dollar was mixed Wednesday at mid-day against the world's other major currencies -- strengthening slightly against the Swiss franc, but falling against the euro,British pound, and yen -- but that doesn't blot out the dollar's bullish pattern during the United States' worst financial condition in decades.