Candid Greenspan, Citing U.S. Deficits, Spurs Dollar Decline; Yen Hits A 4 1/2 Year High; Fed chairman: U.S. needs for foreign capital rising at an unsustainable pace.(A)

Publication: Investor's Business Daily

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COPYRIGHT 2004 Investor's Business Daily, Inc.

Byline: JED GRAHAM

Federal Reserve Chairman Alan Greenspan on Friday delivered his strongest warning that the U.S. has grown too dependent on foreign capital.

That undercut an already shaky dollar. The dollar fell to 102.67 yen intraday, the lowest since April 2000. The euro traded to $1.305, just a hair below a record high set earlier in the week.

Even Treasuries, which had largely shrugged off the dollar's slide, took it on the chin. The 10-year yield rose eight basis points to 4.20%. Meanwhile, the S&P 500 fell 1.1% and the Nasdaq slid 1.6%.

"Net claims against...

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