Thursday, October 30, 2008

US Dollar Comeback could Help Pound and Euro

US dollar makes comeback, 'bucking' world downturn
Amid wreckage of the US financial system, the battered buck makes surprise comeback


NEW YORK (Associated Press) - The stock market is in shambles, credit markets are squeezed and corporate earnings are cratering. But one piece of the mangled U.S. economy is making an improbable comeback: The once-almighty dollar.


As the financial meltdown clobbers world economies from South America to Asia, investors desperate for safe assets are plowing money into the battered buck _ helping it snap a six-year slide and reclaim its long-held status as a stable asset during rough times.


"The dollar has become the safe-haven play," said Kathy Lien, director of currency research at Global Forex Trading in New York. "It's a pretty monumental move we're seeing."


Courtesy: Villas in Majorca | money.cnn.com | New York Associated Press

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