The dollar fell to 15-year low against the Euro on September 13th, 2007 which is a long losing streak to say the least. The reasons given are economic speculation about the slowing of our economy that will prompt the Federal Reserve to lower rates. That makes our currency less attractive and reduces the appeal of U.S. dominated assets.

The continued housing slump and the accompanying sub-prime mortgage fiasco doesn’t help. Speculation has it for 50 basis point rate cut next week.

As the dollar slumps, foreign goods become more expensive for U.S. consumers, meaning prices at Walmart will raise somewhat. The upside check is our goods will be cheaper and more attractive to sell to foreigners and have a better positive impact on our deficit.