Euro smashes another record against dollar
Sunday, 30 September 2007
LONDON, Sept 29 (AFP): The euro went on another record- setting run against the beleaguered US dollar yesterday, smashing through the 1.42-dollar level for the first time to hit a new peak of 1.4243 in late trade here.
Analysts said the latest spurt in the single European currency, created in 1999, reflected a growing conviction that the US Federal Reserve would continue cutting interest rates to help shore up a struggling US economy.
The euro was trading at 1.4150 dollars late Thursday in New York.
"The market remains decidedly negative on the dollar ... with the euro/dollar reaching a seventh consecutive daily record high," said Michael Woolfolk at the Bank of New York Mellon.
The US currency has been under heavy selling pressure since last week's decision by the Fed cut benchmark US interest rates by half a per centage point.
The Commerce Department earlier Friday reported that its key inflation gauge, the personal consumption expenditures price index, had fallen 0.1 per cent in August and showed a 1.8 per cent rise over the past 12 months, its weakest showing in three and a half years.
Core inflation, which excludes volatile food and energy costs, rose 0.1 per cent in August and came to only 1.8 per cent in the past year.
Analysts said the latest spurt in the single European currency, created in 1999, reflected a growing conviction that the US Federal Reserve would continue cutting interest rates to help shore up a struggling US economy.
The euro was trading at 1.4150 dollars late Thursday in New York.
"The market remains decidedly negative on the dollar ... with the euro/dollar reaching a seventh consecutive daily record high," said Michael Woolfolk at the Bank of New York Mellon.
The US currency has been under heavy selling pressure since last week's decision by the Fed cut benchmark US interest rates by half a per centage point.
The Commerce Department earlier Friday reported that its key inflation gauge, the personal consumption expenditures price index, had fallen 0.1 per cent in August and showed a 1.8 per cent rise over the past 12 months, its weakest showing in three and a half years.
Core inflation, which excludes volatile food and energy costs, rose 0.1 per cent in August and came to only 1.8 per cent in the past year.