Governor of the Bank of Israel Prof. Stanley Fischer: I am not saying don’t invest, just take into account what is likely to happen.
Governor of the Bank of Israel Prof. Stanley Fischer said last night that he expected that the dollar would continue to weaken in global foreign currency trading, due to the US’s huge balance of payments deficit.
Speaking in an interview on Channel 2’s current affairs program, “Meet the Press” Fischer qualified his warning. “It’s difficult to predict what will happen to the dollar in the short and medium term, in six months or a year’s time,” he said. “Everyone knew, in 2005, that the long-term trend pointed to a weakening of the dollar, so anyone who bet on the dollar back then lost a lot of money. We don’t know how the dollar will fare in the coming months, even as far ahead as next year.”
Asked whether he would advise people to avoid investing in the dollar, Fischer replied, “Interest rates and return rates on stocks on markets differ from place to place. I’m not saying don’t invest, just take into account what is likely to happen.”
Published by Globes [online], Israel business news - www.globes.co.il - on January 7, 2007
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