The U.S. Dollar has been the world's reserve currency since World War II. Yet, the Bush administration, reversing the actions in the Clinton years, has changed the playing field by allowing the dollar to drift lower. In this analysis, Dr. Duarte looks at several key factors that are influencing the action of the U.S. Dollar, and that may have some long lasting consequences.
The U.S. Dollar is nearing a multi-year low, as measured by the Dollar Index. The common wisdom suggests that the status of the dollar is based on economic fundamentals. Yet, there is data that suggests that beyond the slowing economy, the long term trend and the increasingly dangerous of the dollar is stemming from policy decisions made by Congress and by the White House.
Sterling broke through the $1.98 barrier this afternoon, hitting a fresh 14-year peak of $1.9847 as manufacturing activity in the US plunged to the lowest level in three-and-a-half years, sparking fears of a hard landing for the US economy.
From the shrine of the Blessed Virgin Mary's house near Ephesus, Benedict XVI implored for peace in Jerusalem and the whole world.
"Strengthened by God's word, from here in Ephesus, a city blessed by the presence of Mary Most Holy -- who we know is loved and venerated also by Muslims -- let us lift up to the Lord a special prayer for peace between peoples," exhorted the Pope in his homily at a Mass attended by Turkish Catholics today.
To live peacefully with Muslims and Jews, Christians must put aside the notion that their faith requires the creation of a Christian kingdom on Earth, a Lipscomb University theologian told an interfaith gathering at the university.
"We are not going to get very far in our relationship with Jews or Muslims if we do not let go of this idea," Lipscomb professor Lee Camp said at Tuesday's conference.
ANKARA, Turkey -- Pope Benedict XVI, who sparked Muslim anger in September when he quoted a 14th-century ruler's characterization of Islam as a religion spread by violence, reached further back for more conciliatory words yesterday as he began a four-day visit to Turkey, his first papal trip to a Muslim country.
In a speech that stressed the need for honest and open dialogue between Christians and Muslims, Benedict recalled the words of Pope Gregory VII, who in 1076 wrote a letter of thanks to a North African Muslim ruler for his benevolence to Christians.
The dollar has continued its recent decline, falling to fresh 20-month lows against the euro as concerns grow about a US economic slowdown.
In early Wednesday afternoon trading, the dollar was hovering around $1.31 against the euro, after earlier falling as low as $1.32.
The dollar's continuing weakness came after US data showed a fall in both the price of goods and consumer confidence.
Analysts now predict US interest rates will have to be cut early next year.
Followers of the militant Shiite cleric Muqtada al-Sadr took over state-run television to denounce the Iraqi government, label Sunnis "terrorists" and issue what appeared to many viewers as a call to arms.
The two-hour broadcast from a community gathering in the heart of the Shiite militia stronghold of Sadr City included three members of al-Sadr's parliamentary bloc, who took questions from outraged residents demanding revenge for a series of car bombings that killed some 200 people Thursday.
Jordan's King Abdullah says the Middle East is on the brink of three potential civil wars -- in Iraq, in Lebanon and among the Palestinians.
Abdullah, who hosts U.S. President George Bush and Iraqi Prime Minister Nouri al-Maliki for talks Wednesday, appeared Sunday on ABC News' "This Week with George Stephanopoulos."
"We can possibly imagine going into 2007 and having three civil wars on our hands," the king said.
The US dollar has reached a 'tipping point' as foreign exchange markets wake up to the threat that the Federal Reserve will have to slash interest rates in the new year to stave off recession, analysts say. After a sharp sell-off on Friday took the greenback to 18-month lows against the euro, and pushed the pound to $1.93, economists warned that there was worse to come for the US currency.
The political leader of Hamas has said the US and Europe have an historical opportunity at the moment to resolve the Middle East conflict.
"In six months ... if this chance is not used, the Palestinian people will close all political files and launch a third intifada," Khaled Meshaal said in Cairo on Saturday
Chinese President Hu Jintao has signed a free trade deal with his Pakistani counterpart, Gen Pervez Musharraf, during talks in Islamabad.
Diplomats say the agreement could triple the value of bilateral trade within five years, to $15bn (£7.7bn).
The two countries have also agreed new defence and energy deals and pledged to continue nuclear co-operation.
Ethiopia has made preparations for a conflict with the Islamists who control much of southern Somalia, Prime Minister Meles Zenawi has told MPs.
The Islamists have repeatedly declared Jihad, or Holy War on Ethiopia, accusing it of backing their rivals in Somalia's interim government.
Iraq and Syria have confirmed they have fully restored diplomatic relations after they were severed 24 years ago.
The agreement was announced in Baghdad by Walid Moallem, the Syrian foreign minister, who earlier called for a timetable for the withdrawal of US troops from Iraq, and Hoshyar Zebari, the Iraqi foreign minister.
Relations between the two countries were severed in 1982 when Damascus accused Baghdad of fuelling riots by the banned Muslim Brotherhood in Syria.
BAGHDAD Iraqi leaders said Monday that they were seriously considering three-way talks with Iran and Syria, responding to an overture from Iran's president that raised new questions about the level of American influence here.
The talks would focus on how the two neighbouring countries could help quell rising sectarian bloodshed in Iraq, according to Iraqi officials familiar with Iranian President Mahmoud Ahmadinejad's offer.
The invitation to a summit is a further assertion of Iran's influence in Iraq, and it comes at a time when the U.S. government is sharply divided over whether to make an appeal of its own to Iran and Syria.
Chinese President Hu Jintao has said China wants to increase its "mutual trust" with India.
Mr Hu, who is the first Chinese head of state to visit India in 10 years, has also held talks with Indian Prime Minister Manmohan Singh.
The two countries are expected to sign a series of co-operation agreements.