The US dollar has fallen to a record low against the euro today, as markets signal a vote of no confidence in the Fed's banking system money injections.
The dollar is currently trading at $1.55 per euro, the lowest level since the euro's debut in 1999. The US dollar index (DX) is also trading lower, at 72.512. Earlier today, it reached a low of 72.471, just above its record low of 72.462 set on March 7, 2008.
More from Bloomberg, "Dollar falls to record low...":
"The dollar fell to a record below $1.55 per euro as firms from Citigroup Inc. to Goldman Sachs Group Inc. said the Federal Reserve's plan to inject $200 billion into the banking system may fail to break the freeze in money-market lending.
The U.S. currency erased almost half of yesterday's 1.6 percent rally versus the yen, the biggest in six months, which came after the Fed said it would lend Treasuries to financial institutions in return for mortgage debt. Traders bet the Fed will cut rates by as much as three quarters of a percentage point next week to avert a recession, while the European Central Bank keeps borrowing costs unchanged."
Plenty more in this article about how these central bank actions are more of a band aid than a cure for what ails the system. You'll see the phrase, "not a panacea", mentioned twice, by two seperate analysts, in the space of three paragraphs. Plus, details on what traders are expecting from the Fed in their March 18 meeting.
More commentary on the dollar and the problems facing the banking system from Reuters, Fintag, and investor Wilbur Ross, via the The Big Picture.