A collapsing housing market and a tightening credit crunch is seeing the almighty US dollar transit to ever decreasing orbits these days. On Thursday, for the first time in 30 years, it was at par with the Canadian dollar. The last time the two currencies were at par was in November 1976.

The dollar has also arrived at its lowest level yet against the euro, touched a nine-year low against the Indian rupee and dipped against the British pound.

Meanwhile the dollar''s woes are reflecting alongside other worrying domestic news with the index of leading economic indicators showing its greatest fall in August - the most in six months. The indicators index, compiled by the Conference Board, declined 0.6 per cent, after a 0.7 per cent increase in July, the New York-based group said yesterday.

The index points to the direction of the economy over the next three to six months.

The data reflects concerns that the US economy might be heading for a recession with a collapsing housing market, tougher lending standards and a weaker jobs scenario, which are threatening consumer spending.

There is a silver lining in the clouds for the American corporations, however. Even as their imports get costlier, overseas demand for Americans goods stands to get a boost.

also see : General reports on Economy