The plunging dollar has hit, even the world of fashion, with top models now demanding to be paid in Euros.
Gisele Bündchen, a 27-year-old Brazilian model, is estimated to have a personal fortune of $150m (£72m) She is the face of numerous brands, but, appears to take a keen interest in financial markets. She is now insisting on negotiating contracts in Euro’s arguing that the dollar is likely to continue to remain weak in the coming year, (2008)
3 Reasons to get that $10,000 photo shoot in Euros rather than dollars.
- US Current Account deficit of 6% of GDP
- Falling US House prices, leading to slower growth and potential recession
- A slowdown in growth is likely to lead to lower interest rates in the US – lower interest rates will reduce hot money flows and further undermine the strength of the dollar.