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The ailing US dollar is the focus of fresh speculation today as the meeting of the Federal Reserve (Fed) approaches, where a Federal Funds rate cut of at least 0.25 per cent is widely expected.

Ryan Kneale, market analyst for financial bookmakers, BetsForTraders.com, said that the Fed is clearly focused on bolstering the broader health of the economy, rather than alleviating short-term financial stress, and will sentence the dollar to another slide.

"It is hoped that the resultant cheaper credit will trigger sufficient spending to boost company profitability once more, but this won't save the dollar. Its interest rate yield advantage over the euro, currently at 0.75 per cent, would fall to just 0.5 per cent. The British pound would further increase its yield advantage over the dollar, taking it from 1 per cent to 1.25 per cent," Ryan said.

He continued, "Right now, the dollar is languishing at its weakest level in years against the pound, after crashing through 2.0600 for the second time in 2007. It is also at near-record lows against the euro."

Analysts are now poised for the predicted outcome of the Fed meeting - a further slash of interest rates, which will mean an even longer spell in the doldrums for the beleaguered dollar.

Ryan added, "Clients at BetsForTraders.com are uncannily well-placed to make money out of the dollar's woes. In this instance, we have seen the volume of bets placed on all currency pairs involving the US dollar, more than double in the last few days, with a clear 78 per cent taking a short US dollar position. We have also seen an increase in the number of winning bets during the last week, as our market-savvy clients take advantage of the clear up-trend in sterling/dollar (GBP/USD) and euro/dollar (EUR/USD)."

The greenback's poor performance has been inextricably linked to the sub-prime mortgage debacle, the fallout from which has inevitably spread throughout the economy. The August 'credit crunch' meant poor third quarter earnings from some of the world's biggest companies, Merrill Lynch's eight billion dollar write down being the most startling example.

The downturn in the economy has made US stocks less desirable, as they are less likely to yield good returns, especially when there is so much perceived currency risk for foreign investors. This has led to diminished demand for the dollar. Against such ongoing turbulence, last month's dramatic interest rate cut to the current level of 4.75 per cent was never going to be a sufficient measure in isolation.

Ryan concluded, "As the benefits of the interest rate cut will only be felt over time, the immediate forecast for the dollar is not positive. With the European Central Bank (ECB) and the Bank of England (BOE) leaving their current rates unchanged, any further rumours of cuts from the US will only weaken the dollar further. Many of our biggest clients are now betting that the dollar will hit 2.100 against the pound and 1.5000 against the euro in the coming weeks."

-ENDS-

Media Enquiries:

Justyna Gnyp, hblmedia, 0207 612 1830, justyna@hblmedia.com

Notes to Editors:

Launched in 2007, BetsForTraders.com is a fixed-odds financial betting website which offers a range of 10 different types of fixed-risk bets on financial markets, single stocks, stock indices and the foreign exchange markets. Bets are fully customisable and operate through a real-time dealing interface.

As well as providing the largest range of bet types in the marketplace, the company offers a range of unique bet options not available through other betting sites. The website allows clients to "build their own bets" by adjusting the parameters using a sliding bar feature to optimise the price-payout ratio and specify the length of each bet, giving clients more control and price transparency.

BetsForTraders.com is owned and managed by Trinitas Capital (IOM) Ltd, based in the Isle of Man in the British Isles. The company is fully licensed to offer financial bets by the Isle of Man government. The Isle of Man is an important global banking centre and one of the best-regulated low tax jurisdictions. It holds a Standard & Poors AAA rating and has a high standard of accountability and numerous player protection laws. Due to its strict regulatory regime, it is one of only a few jurisdictions on the UK Government's White List, which grants exemption from betting advertising restrictions. Trinitas Capital (IOM) Ltd. is subject to regular audits, software inspections and ongoing regulatory scrutiny by the Gambling Supervision Commission.

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