• Most Popular
  • Most Shared

U.S. dollar to stay weak: World Bank Asia economist

SINGAPORE
Wed Nov 14, 2007 11:16pm EST

SINGAPORE (Reuters) - The U.S. dollar may remain weak for a while, and this weakness should prop up U.S. growth as well as help adjust global trade imbalances, a World Bank economist said on Thursday.

"The dollar may remain weak," Milan Brahmbhatt, Asian regional economist at the World Bank, told reporters.

"U.S. exports are strong and imports weak and this is being helped by the dollar's weakness."

Brahmbhatt said the flip side of this dollar weakness did mean other economies would see their currencies appreciate against the dollar.

"Those appreciating currencies are part of the adjustment process of global imbalances," he said.

The dollar has fallen about 7 percent against the currencies of its main trading partners .DXY in the past three months.

The World Bank released its semi-annual outlook for East Asia on Thursday.

(Reporting by Vidya Ranganathan, editing by Jacqueline Wong)



More from Reuters

Joint Terminal Attack Controller SSgt Clinton J. Herbison, a U.S. Airman from the 817 Expeditionary Air Support Operations Squadron (EASOS) takes a break during a night mission near Honaker Miracle camp at the Pesh valley of Kunar Province August 12, 2009. Credit: REUTERS/Carlos Barria

Pictures of the Year

A look at the best photos of 2009.  Slideshow 

    The Dalai Lama jokes with a nasal spray after being asked his opinion on the swine flu during a press conference after his first lecture in Lausanne, Switzerland, August 4, 2009. REUTERS/ Valentin Flauraud

    What a wacky year it's been...

    Um, what's up the Dalai Lama's nose? "Oddly Enough" editor Bob Basler rounds up the goofiest photos of the year.  Full Article 

    A caution sign is seen next to a stock board at the Australian Securities Exchange (ASX) in Sydney September 5, 2008. REUTERS/Daniel Munoz
    Political Risk in 2010:

    Don't say we didn't warn you

    With the financial crisis (mostly) in the past, U.S. investors are eying a fresh start to the coming year. Here's a look at what speedbumps lie ahead.  Full Article