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How Low Can Dollar Go?

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Will oil rise above $100 next week? Will the dollar’s fall intensify and hurt America's financial stability? Find out from one of the most respected commodities traders in the world.

Strategic investor Dennis Gartman, author of the Gartman Letter, joins the panel for this conversation. Following are excerpts.

Do you think weakness in the dollar continues next week?

“The dollar, I think, is starting to make a turn” says Gartman. “Watch what happened with the Canadian dollar which had been the strongest currency in the world. In the past 48 hours it’s weakened materially. I think this might be a harbinger of change for the US dollar.”

Is the dollar at a short term bottom?

“Yes, absolutely,” Gartman says.

They say commodities take the stairs up and the elevator down. How fast will the trade unravel, especially in gold?

“It’s difficult for gold to get above $840 and now there’s huge selling from legacy central banks,” says Gartman. “I wouldn’t be surprised if you took spot gold to $800. And at that level I’m a buyer again.”

5 years from now where are commodity prices going because of Chinese demand?

“Dramatically higher,” says Gartman. “But where will they be 3 week from now – that’s the question we have to live by. In the case of gold and copper probably lower.”

Symbol
Price
 
Change
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Trader disclosure: On Nov. 9, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (C) Options, (CSCO) Options, (GOOG) Options, (GS) Options, (XLF) Options (YHOO) Options; Finerman's Firm And Finerman Own (GS), (HD), (KALU); Finerman's Firm Owns (WMT), (BEAS), (KSS); Finerman's Firm Is Short (LEH), (MBI), (SPY), (IYR), (IJR), (IWM); Finerman's Firm Owns (BIIB) Options; Finerman's Firm Owns (MSFT) Options; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P 500 Puts; Seygem Asset Management Owns (AAPL), (CSCO), (EEM), (F), (GLD), (MER), (SBUX), (X), (YHOO), (MSFT),Gazprom

DENNIS GARTMAN
Gartman Owns (RIG), (BRS), (YZC), (BQI), (GMO), (DE), (PBR), (DOG); Gartman Is Short (MBI), (ABK), (XOM), (COP); CIBC Gartman Index Owns Corn, Soybeans, Gold,The EUR, Crude Oil; CIBC Gartman Index Is Short S&P Futures