Formerly NE North Dakota, now NW MN | I don't know about "well beyond what is warranted". Keep in mind that a rise in interest rates, after a taper-tantrum, would be viewed as a response to an improved economy, at least domestically. That sentiment often has the ironic effect of being bearish the U.S. dollar, as more positive sentiment can create a risk-on environment, fostering movement out of the greenback.
There's also the whole issue of our gov't remaining solvent in a rising rate environment that's certainly not super-bullish for the greenback. So I don't know that I think a rise in interest rates would mean the dollar goes to 120ish.
I can't believe i'm going to say this, but I'm with Nadar (I think. I haven't read his letter nor do I intend too). I think the fed should have been saying stuff like "prospects for growth are rosy, the economy is strengthening, so we're going to raise rates, albeit in a slow and measured way. |
I Voted For This Guy....
