The dollar has really taken it on the chin these last few months, hitting record lows against just about every other major currency.  The EUR/USD trickled over 1.47, the GBP/USD almost reached 2.12 and after reaching parity just a few weeks ago, the USD/CAD got down to nearly .90.  These seem like some pretty unbelievable number but they shouldn’t come as a great surprise.

The dollar has been pelted on all sides and the economic news the last few months has been one bad sign after another.  The Fed has had to lower the target for the Fed fund rate twice now, and may be in line for another before the year is over.

We’ve seen today the dollar take back a little of its losses against some of the other currencies, but it’s still reeling under the strength of the Yen where it briefly dipped below 1.10 for the first time since May of 06.

It should be an interesting couple of weeks as this very volatile forex market plays out.