How low can it go?

I read a great article today, describing French president Nicolas Sarkozy's reaction to the falling value of the US dollar. He says that despite the US asserting the importance of a strong currency, they have not taken steps to prevent the dollar's value from sliding further (ie. see recent interest rate cuts). This presents the idea that perhaps the US is allowing the dollar to fall to boost its exports to try combat some of the fallout from the credit crunch.

He said the U.S. should “denounce the abuses and excesses of a financial capitalism that sets too great a store on speculation ... [and] commit fully to the establishment of the necessary rules and safeguards. The America I love is the one that encourages entrepreneurs, not speculators.”

Well said.