I said many times before, gradual decline of the dollar is not negative for the equities market per se. Sometimes such a decline points out some severe underlying reasons for a weakening economy, I don't see it right now, and frankly, now that we reached my target of $1.18 to the Euro, I don't think that in this mini cycle there is much more to go in the dollar decline. I would not be surprised to see the ECB finally yielding and lowering rates which will bring the ratio back to the $1.12 to the Euro or so. Sudden declines in the dollar, yes, these could be catastrophic, not so much by itself, but through the domino effect that any financial dislocation can bring to the derivatives markets.
Zeev
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