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See also "Dollar-Euro Rate Sparks Crisis Fears." Quotable:

"The trend to a weaker dollar is going to continue. The trade deficit is just too big," said David Wyss, chief economist at Standard & Poor�s in New York.

The dollar�s record low against the euro coincided with the government�s report that the United States was running a trade deficit through September at annual rate of 592 billion dollars. That compares with last year�s record 496 dollars billion. As a result, the country is having to borrow almost 600 billion dollars from overseas this year to pay for the imported cars, televisions and other items Americans are buying.

Overseas investors so far are more than willing to lend the money. The unsettling worry, however, is what could happen if they suddenly lost interest in holding dollar-denominated investments. The outward rush from US stock and bond markets could send stock prices crashing and interest rates soaring.