US industry sees risks from weak dollar
US industrial leaders see a potential for problems from the prolonged weakness in the dollar despite the boost it may give to American exports, a manufacturing group said Thursday.
The Manufacturers Alliance/MAPI said in its quarterly outlook that the soft dollar is among several risks that present a "daunting challenge" to the global economy.
The group predicted that the dollar "is in the midst of an extended period of decline."
"Global sentiment against the dollar is gaining traction, generating challenges for the short-term economic outlooks of major US trading partners," the report said.
MAPI economist Cliff Waldman says the dollar could drop another five percent against a basket of global currencies by the ned of the year and may fall even further in 2008.
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