[KiwiHopeful]

Flight from U.S. dollar gathers strength

The assault against the U.S. dollar intensifed yesterday as the greenback slumped to historic lows against currencies as diverse as the U.K. pound and the Polish zloty amid growing conviction among investors higher returns lie beyond U.S. borders.

While many analysts say the greenback will continue to fall against many currencies, a question mark remains over what it will do against the Canadian dollar. The loonie joined in the greenback assault yesterday, rising US0.19? to a five-month high of US88.66?.

"An IMF forecast that was released last week showed for the first time in 37 years you will get 5% global growth and the U.S. accounting for less than 10% of that growth -- half its normal share of global GDP," said Stefane Marion, assistant chief economist at National Bank in Montreal. "You've never seen the global economy growing at 5% with the U.S. growing ... only 2.2%."

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