FED QUIET AS DOLLAR FALLS FURTHER

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The Federal Reserve Board maintained an uneasy silence as the dollar plunged to record lows against the Japanese yen and the German mark for the fourth consecutive day. While investors worldwide continued to dump the dollar, the U.S. government held off from intervening in currency markets. The dollar is losing ground in part because Mexico remains in political and economic turmoil as the U.S. prepares a $20 billion bailout, and also because investors expect interest rates to rise in Europe, making the mark more attractive. Although a weak dollar could boost inflation, TIME Washington correspondent Adam Zagorin does not expect the Fed to raise interest rates now.