The American Economy just isn’t looking up these days. The growth rate for this quarter will probably be close to zero. Unemployment is rising. The stock market remains sluggish(缓滞的). And now many worry that the growing economic stagnation(停滞) abroad will affect the United States. With trouble spots multiplying around the globe, investors are already coming to the conclusion that the safest place to put their money is in the U. S. A.
How else to explain the gravity-defying feat of the dollar By all economic logic, the dollar should fall when the Federal Reserve cuts interest rates. But as any American tourist knows, the greenback has been firming up against the euro and the yen despite six rate cuts this year. European and Asian investors are using their savings to buy American bonds even though they can get higher interest rates in their own countries.