The dollar limped its way through the late 1970s, straining under the weight of rising inflation and a declining economy. Things only got worse on October 31, 1978, when the dollar flirted with setting a record low against foreign exchange markets. The drop was triggered by a few factors. For one, the dollar suffered from fears that oil prices would keep climbing higher and, in the process, further destabilize American currency. News that the Treasury Department was considering asking the International Monetary Fund for aid only exacerbated the situation. While the government vehemently denied the report, they couldn't change the fact that the world had lost faith in the dollar. One London analyst concluded, "It will take a lot to change sentiment and a long time to restore confidence" in the dollar.
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