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Strategies & Market Trends : Asia Forum

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To: Ron Bower who wrote (6362)9/12/1998 1:25:00 PM
From: Derrick P.  Read Replies (1) of 9980
 
I don't see the yen getting much stronger against the $US (and it may get weaker). I
hope we soon see the $US weakening against other major world currencies as I think
it necessary to prevent the 'crisis' from having a major impact on the US economy.
This would also aid recovery in HK and China.


A weaker dollar by itself is not enough. This would tend to reduce demand for foreign goods in the US. It must be coupled with an interest rate decrease. This will tend to stimulate the economy, increase demand, and ease pressures on foreign currencies and debt payments.
I agree with Zeev that the Fed will probably not ease until the US stock market is lower.

Best Regards,

Derrick
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