Weakening dollar raises alarm in US

WASHINGTON, AUG 5: The sudden weakening of the dollar against the yen and euro has raised fears of the possible termination of US economic expansion, reports have said. quot;This is because of the potential for a stampede by foreign investors from American stocks and bonds, which could terminate the US expansion and destabilise the world economy,8221; Washington Post said. On Tuesday, the dollar dipped to the 113-yen-per-dollar range from around 122 in mid-July. The euro had almost come down to parity with the dollar. It was 1.07 dollars to the euro. The US trade deficit hit a record 164 billion last year and is headed above 200 billion this year as the booming US economy sucks in massive amounts of imports, and slumping overseas markets absorb fewer exports from American firms.