Bush not worried at decline of the dollar

US PRESIDENT George W Bush’s administration is untroubled by the dollar’s decline, which may help boost sales and manufacturing jobs in an election year without an acceleration of inflation or higher interest rates.

In Europe, leaders are increasingly concerned that the euro’s 22% gain against the dollar in the past year threatens an economic recovery dependent on exports. Italian Prime Minister Silvio Berlusconi said last month the euro’s exchange rate is “very high”.

French Prime Minister Jean-Pierre Raffarin said on December 16 there are currency limits “that can’t be breached”.