THE DOLLAR: No Longer A Safe Haven

No Longer A Safe Haven

During past global crises, nervous investors around the world followed a simple course of action: they bought dollars, the classic safe-haven currency. Not this time. As tensions increased in the gulf, the U.S. currency finished trading in New York last week at a 42-year low of 1.55 German marks to the dollar.

The unloading of the dollar reflects the precarious condition of the U.S. economy, which may be in a recession. The government provided further evidence of trouble last week when it reported that the Consumer Price Index rose a steep 0.4% in July. The surge, which came before the gulf...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!