CNBC’s Steve Liesman says that unnamed US officials are unconcerned by the fall in the dollar. They see it as a retracement of last year’s strength during the financial crisis. They point to the ease with which the US has been able to issue Treasury debt as a sign that the dollar decline is far from crisis. They see the inflationary impact of the weak dollar as modest, but will keep an eye on it. The shrinking current account deficit is long-term positive for the dollar, they say.
As one would suspect, no bells are ringing in Washington, even though they might be wringing in Beijing, Frankfurt. Seoul, Brasilia…
