Dollar Falls as Bailout Plan Erodes Confidence in US Finances

Dollar Falls as Bailout Plan Erodes Confidence in US Finances

http://www.bloomberg.com/apps/news?pid=20601087&sid=aE5sJ5ypmTnQ&refer=home

Sept. 23 (Bloomberg) -- The dollar fell for a second day against the yen on concern a U.S. proposal to buy $700 billion of troubled assets will erode investor confidence in the nation's finances.
The greenback weakened for a fifth day against the euro, its longest losing stretch since February, as Treasury Secretary Henry Paulson's plan would increase the nation's debt ceiling by 6.6 percent to $11.315 trillion. The currency also fell before U.S. reports this week that may show home sales slowed, adding to the case for the Federal Reserve to lower interest rates.
``Obviously there are genuine concerns over the sustainability of the U.S. fiscal position,'' said Tony Morriss, a senior currency strategist at Australia & New Zealand Banking Group in Sydney. ``This week the dollar will remain under pressure.''

``That Treasury plan will not be a one and done,'' said Kenneth Rogoff, an economics professor at Harvard University and a former chief economist at the International Monetary Fund. ``It's just the first step on the long road of bailouts with ever-rising costs especially when it works through its way out of the political process. That's going to hurt the dollar.''