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Thu, Jan 20, 2005 - Page 12 News List

Weakening dollar is `not worrying yet'


Federal Reserve Bank of Philadel-phia president Anthony Santomero said on Tuesday that the weakening dollar is not worrying yet.

Santomero said he doesn't see the sliding dollar against its major rivals "as a crisis or concern at this point."

The euro has gained 4.6 percent against the US dollar since it began its most recent notable downturn in early October. At its best level hit on Dec. 31, 2004, US$1.3660, the euro was up 9.8 percent versus the buck from early October.

Santomero also said that the effects of the weaker dollar have yet to be felt in the real economy and that, ultimately, it will fuel higher import prices.

"The movement of the dollar in the past several quarters will take time to work through the economy and improve our competitiveness," he told reporters.

"It'll also put some pressure on the stability of prices as imported goods become more expensive. But at the end of the day we must realize that the US economy is still dynamic," the Philadelphia bank president said.

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