US dollar to continue its decline against sterling

The US dollar is set to continue depreciating against sterling and the euro, which will hit unhedged investment returns from across the Atlantic. Since the start of 2002 to 13 May 2003, the dollar has fallen by over 10.5% against the euro and 11% versus sterling, according to Bloomberg, and consensus projections point to continuing weakness in the dollar. Michael Deakin, chief investment officer at Insight Investment Management, says the news is not all bad and the decline of the dollar against the euro should provide a boost for US exporters and manufacturing companies. 'The weake...