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Rogers Says Dollar to Be `Devalued,’ Buys Commodities
Posted By admin On November 25, 2008 @ 9:25 am In Featured Stories | Comments Disabled
Ron Harui and Mike Schneider
Bloomberg News 
Tuesday, November 25, 2008
Nov. 25 (Bloomberg) — The U.S. dollar will be “devalued” as policy makers seek to weaken it, undermining the greenback’s role as an international reserve currency, said Jim Rogers, chairman of Rogers Holdings in Singapore.
“They think that if you drive down the value of your money, it makes you more competitive, now that has never worked in history in the long term,” said Rogers. The ICE’s Dollar Index has gained 19 percent since Rogers said in an interview on April 27 he expected a dollar rally “about now.”
The dollar advanced against 15 of the 16 most-traded currencies since the end of June, losing out only to the yen, as a global financial crisis drove investors to the perceived safety of Treasuries. U.S. politicians want to reverse those gains to revive growth, Rogers said.
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The dollar is “going to lose its status as the world’s reserve currency,” Rogers said yesterday in a televised interview with Bloomberg News. “It will be devalued and it will go down a lot. These guys in Washington, they want to debase the currency.”
Rogers said that he is buying the Japanese yen. All of the 16 most-active currencies have weakened against the yen since June, led by a 39 percent drop in the Australian dollar.
The ICE’s Dollar Index, which tracks the greenback against the currencies of six major trading partners, traded at 86.147 as of 7:30 a.m. in London from 86.081 late in New York yesterday. It reached 88.463 on Nov. 21, the highest level since April 2006.
Plan to Exit Dollars
Rogers predicts the U.S. currency’s rally “will probably go into next year” and said he plans to cut the remainder of his dollar holdings during this period.
“If I were doing it today, and what I have done today, is buy the yen,” Rogers said. “But, it is also an artificial move that’s going on. It’s a difficult problem to find out what is a sound currency.”
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URLs in this post:
 Bloomberg News: http://www.bloomberg.com/apps/news?pid=20601087&sid=aP5uFzsclsDQ&refer=home
 Dollar’s Days Numbered, Buy Commodities: Jim Rogers: http://www.prisonplanet.com/dollars-days-numbered-buy-commodities-jim-rogers.html
 Jim Rogers using rally to exit dollar assets: http://www.prisonplanet.com/jim-rogers-using-rally-to-exit-dollar-assets.html
 Whatever Happens, Commodities Win: Jim Rogers: http://www.prisonplanet.com/whatever-happens-commodities-win-jim-rogers.html
 Bailout Is ‘Nail in the Coffin’ for Euro, Rogers Says: http://www.prisonplanet.com/bailout-is-%e2%80%98nail-in-the-coffin%e2%80%99-for-euro-rogers-says.html
 Investors Selling the US dollar before COLLAPSE: http://www.prisonplanet.com/investors-selling-the-us-dollar-before-collapse.html
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