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December 2, 2008 12:10:42 PM CST

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Is the Worst Over for the Dollar?

Posted Dec 27, 07 12:30 PM CST in US,  Business 

(Newser) – After a year that saw the dollar slip to record lows against the euro and its weakest position in decades, the worst might be over for the beleaguered greenback. A survey of 42 strategists by Bloomberg found nearly unanimous consensus that the dollar is set for a gain, with a median prediction of a 3.5% rise against the euro, to $1.40, in 2008.

"Asia and the Middle East know they need to lend some support to the dollar or they're all going to lose out," said one economist, dismissing fears that the dollar might lose its status as the world's primary currency. The dollar's expected rise, however, will curtail the rising exports that hit a record in October.

Source Bloomberg

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Euro coins are seen next to US Dollar bills in Frankfurt, Germany.   (Associated Press)
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A currency exchange employee changes euros and U.S. dollars in an exchange kiosk, in downtown Milan, Italy, in this July 5, 2005 file photo.   (Associated Press)
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