Greenspan ‘sanctions’ falling dollar

THE continuing fall of the US dollar against the euro was “virtually sanctioned” yesterday by US Federal Reserve chairman Alan Greenspan, a leading economist said last night.

The dollar began to fall as Mr Greenspan gave his bi-annual testimony on economics and Fed policy to the House Representative Committee in Washington.

Ulster Bank financial markets economist Niall Dunne said the market immediately seized upon a comment which suggested that "the dollar's decline should help narrow the US trade imbalance".