Cyrix 1 Where anything goes Message Board

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Technology Stocks : Cyrix 1 Where anything goes

CYRX 8.760

-0.8%

Nov 13 3:59 PM EST

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To: hpeace who wrote (260)	3/2/1997 2:43:00 PM
From: Richard Wang	of 640

>>But, even with the low inflation he cannot lower interest rates for two reason. it would fuel more stk matket rise which he thinks is a little ahead of it's self. It would also strenthen the dollar more and the $ has moved to strength quicker than planned.>> I am no economist, nor have I even taken Econ 101, but the conventional wisdom is that lower interest rate leads to a LOWER dollar, or a WEAKER dollar, not a stronger dollar . Lower the rate, the less attractive financial instruments are to foreigh investors, hence less money coming into this country to buy Treasuries. With less money coming into this country, the dollar will get weaker.

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