As Budget Deficit Grows, So Do Doubts on Dollar - WSJ.com

As Budget Deficit Grows, So Do Doubts on Dollar - WSJ.com: "LONDON -- The U.S. economy may be showing signs of recovering from the financial crisis, but the jury is still out on the future of the U.S. dollar.

While many analysts expect the dollar to strengthen in coming months as the crisis fades and the U.S. economy turns toward growth, a growing chorus of investors is expressing concern about the longer-term outlook for the greenback.

In a new twist to an old refrain among economists, who have long worried about the effects of growing U.S. debt, they say that the huge liabilities the U.S. is taking on to dig its way out of crisis could ultimately undermine faith in the dollar.

'There has been a lot of disappointment with the way the U.S. credit crisis was handled,' says Claire Dissaux, managing director of global economics and strategy for Millennium Global Investments Ltd., a London investment firm specializing in currencies. 'The dollar's loss of influence is a steady and long-term trend.'"