Currencies
Both the euro and the yen slipped against the dollar last week. Worries about what the Fed does or doesn't know are diminishing. Investors are now more comfortable with the idea that the 50 basis point rate cut is an insurance policy and not a harbinger of impending doom. Jitters over Bank of Japan intervention along with fears of bank nationalization weighed on the yen during the week.

While the world economy would probably benefit from a weaker dollar, market participants keep coming back to the same old problem - a lack of viable alternatives to the dollar. Some analysts believe the only way to actually bring about genuine reform in Japan and the eurozone would be to substantially inflate the value of their currencies and force them to address the domestic demand and structural issues. While investors in Europe and Asia complain that the U.S. absorbs too large a chunk of worldwide savings, they forget that it is the U.S. consumer that is keeping the moribund Japanese and Eurozone economies afloat!

Last Week's Highlights   •   Global Stock Market Indexes   •   Recap of Global Markets   •   Currencies   •  Indicator Scoreboard

The Bottom Line   •   Looking Ahead