Euro hits record high against ailing dollar
Friday, 14 March 2008
TOKYO, March 13 (AFP): The euro struck a fresh lifetime high of 1.5590 dollars in Tokyo trade today as economic worries kept the embattled greenback under pressure, dealers said.
Market players said the US currency was likely to remain under pressure, as the euro zoomed past the previous day's record high of 1.5570 dollars, amid speculation US interest rates will fall further. US President George W. Bush has said the weakness of the greenback was "not good tidings" and that he backed a stronger dollar.
Credit Suisse strategist Satoru Ogasawara said the euro was likely to keep up the pressure on the dollar.
While US interest rates are expected to be slashed further, eurozone authorities are worried about inflation, he noted.
"There won't be an interest rate cut in Europe for the time being and the European authorities will probably allow the euro to stay at high levels," said Ogasawara.
The dollar also tumbled to a 12-year low against the Japanese currency, dropping to 100.23 yen at one point.
"The dollar is totally out of market favour now," said Kenichi Yumoto, vice president of foreign exchange sales at Societe Generale in Tokyo.
Market players said the US currency was likely to remain under pressure, as the euro zoomed past the previous day's record high of 1.5570 dollars, amid speculation US interest rates will fall further. US President George W. Bush has said the weakness of the greenback was "not good tidings" and that he backed a stronger dollar.
Credit Suisse strategist Satoru Ogasawara said the euro was likely to keep up the pressure on the dollar.
While US interest rates are expected to be slashed further, eurozone authorities are worried about inflation, he noted.
"There won't be an interest rate cut in Europe for the time being and the European authorities will probably allow the euro to stay at high levels," said Ogasawara.
The dollar also tumbled to a 12-year low against the Japanese currency, dropping to 100.23 yen at one point.
"The dollar is totally out of market favour now," said Kenichi Yumoto, vice president of foreign exchange sales at Societe Generale in Tokyo.