O'Neill sees good things for the dollar while investors bang the drum for euro
'When we get ready to change dollar policy I'm going to rent Yankee Stadium and get a marching band so you all will know we are changing,' said US Treasury Secretary Paul O'Neill earlier this year. Can you hear the tuba and the big bass drum in the distance? The dollar can. There's a flaw in O'Neill's analysis of the currency market. The dollar hasn't been strong because his predecessor Robert Rubin ordained that it should be. It's been strong because investors and traders made it so by buying the US currency and assets denominated in it. So it follows that a lower dollar isn't in O'Nei...
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