1. Lower interest rates have weakened the dollar. 2. And one thing that could weaken the dollar is a widening deficit between what Canada imports and what it ships out. 3. And that can weaken the dollar. 4. A failure to resolve the dispute could force the U.S. government to default on its debt, something that could drive investors from American securities and weaken the dollar. 5. A failure to resolve the dispute could force the U.S. government to default on its debt, something which could drive investors from American securities and weaken the dollar. 6. A sharp drop on Wall Street could also weaken the dollar against the yen, which would hurt Japanese exporters and thereby weaken stocks in Tokyo. 7. A widening gap can weaken the dollar, since it means foreign exporters have more dollars to sell when bringing funds home. 8. But the imports have also created a huge trade deficit that threatens to weaken the dollar, complicating future efforts to repair a damaged economy. 9. But to weaken the dollar, actively or through benign neglect, would mean increasing the risks of inflation, as prices of imported goods rose. 10. Earlier Wednesday labor groups, manufacturers and farmers asked Bush, in strongly worded letters, to use the summit meeting to reach an agreement to weaken the dollar. |