Why A Shrinking Trade Deficit Will Drive Down the U.S. Dollar

Today in Frankfurt Fed Chairman Alan Greenspan made some comments about the U.S. current account deficit that caused the value of the U.S. Dollar to drop sharply. In the span of 45 minutes the U.S. Dollar lost an entire cent to the Canadian Dollar, going from $1.20 to $1.19. In "Why A Shrinking Trade Deficit Will Drive Down the U.S. Dollar" we look at Greenspan's comments and discuss why the value of the U.S. Dollar declined today.