Euro hits fresh record high against greenback
Friday, 23 November 2007
TOKYO, Nov 22 (AFP): The euro hit a fresh record high against the dollar in Asian trade today as investors fled from the greenback and shunned risk amid gloomy prospects for the US economy, dealers said.
The dollar has also been hurt by growing speculation that overseas investors may diversify from the US unit and turn increasingly to the euro, they added.
The euro hit an all-time high of 1.4875 dollars in Tokyo afternoon trade from its previous record of 1.4870 reached in New York on Wednesday.
But the single European currency, created in 1999, later eased to 1.4866 in Asian trade.
The euro surged to 161.92 yen from 161.02.
The euro has "benefitted from heightening expectations that Gulf Arab states and Saudi Arabia will revalue their currencies and introduce a basket to replace the dollar peg," wrote NAB Capital strategist John Kyriakopoulos in a note.
Saudi newspaper al-Riyadh reported that Saudi Arabia may have started considering a revaluation of its riyal against the dollar ahead of a meeting of heads of Gulf Arab states in early December.
The dollar meanwhile edged up to 108.95 yen from 108.38, after earlier touching 108.27 yen, the lowest level since June 2005.
The dollar has also been hurt by growing speculation that overseas investors may diversify from the US unit and turn increasingly to the euro, they added.
The euro hit an all-time high of 1.4875 dollars in Tokyo afternoon trade from its previous record of 1.4870 reached in New York on Wednesday.
But the single European currency, created in 1999, later eased to 1.4866 in Asian trade.
The euro surged to 161.92 yen from 161.02.
The euro has "benefitted from heightening expectations that Gulf Arab states and Saudi Arabia will revalue their currencies and introduce a basket to replace the dollar peg," wrote NAB Capital strategist John Kyriakopoulos in a note.
Saudi newspaper al-Riyadh reported that Saudi Arabia may have started considering a revaluation of its riyal against the dollar ahead of a meeting of heads of Gulf Arab states in early December.
The dollar meanwhile edged up to 108.95 yen from 108.38, after earlier touching 108.27 yen, the lowest level since June 2005.