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I thought that Fed interest rate cuts had much more to do with devaluing the dollar
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There's more to it than that. As mini said, the budget deficit plays a role, as does our weak economy and the recent mortgage crisis. It's rumored that at least one major US bank is facing serious financial difficulties (Citi?). Some economists believe at least part of the dollar's decline is due to the negative psychological impact the Iraq war has had on foreign investors, as well.
And we might ask ourselves why the Fed has had to cut interest rates to such low levels in the first place?