Dollar weighed down by US economic concerns
Sunday, 25 November 2007
NEW YORK, Nov 24 (AFP): The dollar remained weighed down yesterday by concerns that the world's largest economy could lose momentum in future months leading to fresh interest rate cuts.
The lingering worries propelled the euro to a new record high against the US currency of 1.4967 dollars in Asian trading before the euro retreated in later European and US trading.
The euro stood at 1.4833 dollars in mid- afternoon trading in New York, marginally lower from 1.4850 late Wednesday. The US market was closed Thursday due to the Thanksgiving Day holiday.
The dollar meanwhile fell to 108.17 yen, against 109.49 late Wednesday.
The US currency has fallen sharply this year against other world currencies amid a persistent housing slump and an associated credit squeeze which is buffeting economic growth.
The Federal Reserve's move to cut US interest rates also pressured the dollar as speculators generally prefer to invest in countries where interest rates are expected to move higher.
The lingering worries propelled the euro to a new record high against the US currency of 1.4967 dollars in Asian trading before the euro retreated in later European and US trading.
The euro stood at 1.4833 dollars in mid- afternoon trading in New York, marginally lower from 1.4850 late Wednesday. The US market was closed Thursday due to the Thanksgiving Day holiday.
The dollar meanwhile fell to 108.17 yen, against 109.49 late Wednesday.
The US currency has fallen sharply this year against other world currencies amid a persistent housing slump and an associated credit squeeze which is buffeting economic growth.
The Federal Reserve's move to cut US interest rates also pressured the dollar as speculators generally prefer to invest in countries where interest rates are expected to move higher.