Dollar hits seven-month high against euro

TOKYO, Sept 3 (AFP) The dollar surged to a seven-month high against the euro and to a two-year peak versus the British pound in Asia today on growing expectations of interest rate cuts in Europe, dealers said. brThey said a slide in crude oil prices should dampen inflation and leave more room for the European Central Bank and the Bank of England to reduce interest rates, making European currencies less attractive to investors. brThe euro slipped to as low as 1.4411 dollars in Tokyo afternoon trade-a level not seen since late January-from 1.4517 in New York Tuesday. brThe euro is faced with further downside risks, both against the dollar and the yen, a Tokyo trader told Dow Jones Newswires. brThe dollar rose to 108.90 yen, up from 108.55 in New York. The euro dropped to 157.16 yen from 157.61. brThe greenback got a boost as oil prices plunged after Hurricane Gustav seemed to have caused less damage than feared to Gulf of Mexico energy facilities. brThe euro was under pressure ahead of a European Central Bank meeting Thursday as traders waited for clues on the prospects of lower interest rates to shore up the ailing eurozone economies. brIn regional Asian trade, the dollar rose to 1,157.05 South Korean won from 1,132.90 Tuesday, to 1.4384 Singapore dollars from 1.4293, to 31.85 Taiwan dollars from 31.77 and to 9,210 Indonesian rupiah from 9,190. brThe greenback slipped to 46.50 Philippine pesos from 46.56 while holding steady at 34.47 Thai baht.