September 22, 2007 (LPAC) - The New York Board of Trade's dollar index, comparing the U.S. currency against six primary peers, including the yen and the Euro, touched 78.398, the lowest since September 1992, while the Fed's major trade-weighted dollar index dropped to 74.78 yesterday, the weakest since its inception in 1971. The dollar fell against 15 of the 16 most traded currencies, only gaining against the yen. The dollar fell a full 5% against the Australian dollar. Because of the "loonies" at the Fed, the Canadian dollar (also known as the "loonie" after the bird), reached parity with the dollar for the first time since the commodity boom of the 1970s.

The Daily Telegraph's Ambrose Evans Pritchard writes that the price of Gold could be expected to continue rising as the Fed's rate cut creates fears of inflations. The gold price hit a 27 year high this week at $737 and once. Pritchard writes, "Analysts say there is now 'clear blue sky' until reaching the all-time record of $850 in December 1980, when speculators drove it upwards in a parabolic rally at the end of the great inflation crisis."

Pritchard quotes Greg Wilkins, CEO of Barrick Gold, saying, "I think it's a perfect storm, to be quite honest with you. What we have is inflation plus lower interest rates, and that's not something that we've seen before. I think that's going to be very bearish for the dollar."