FT.com / World / US & Canada – Oil producers shun dollar

It looks like the dollar is taking a beating at least partially because Russia and OPEC countries are shifting their exposure to dollars by at least a few percent. A twenty-four month low in OPEC’s exposure to dollars is met with a twenty month low in the value of the dollar. It’s definitely hard to argue against their being a solid connection. And it appears it may be the number one tool that Iran will have against the U.S. Probably more effective even than funding Hezbollah.

Anyone want to put money on our going into Iran before they get a chance to shift any more? What about Russia? Just like old times. Actually, I vote for another space race instead.

Oil Producers Shun Dollar
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One thought on “Oil Producers Shun Dollar

  • I won’t be betting on us in Russia anytime soon, as Bush and Putin are too good of buddies (lol). However, one thing’s for sure – the dollar is ailing.

    I’m very interested to see how the Fed handles this, especially if dollar weakness is coupled with domestic economic weakness in the coming months as the effects of the housing market ripple through the rest of the economy. Could free lunch be ending? Stay tuned…

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