Thursday, July 12, 2007

Euro Hits New High Against U.S. Dollar

Euro Soars to New High Above $1.37 Amid Worries About U.S. Economy
By Jackie Farwell
AP Business Writer

NEW YORK (AP) -- The euro shot to an all-time high against the U.S. dollar Tuesday on concerns about the American economy that were fueled by discouraging growth forecasts from key U.S. retailers and homebuilders.

The euro hit a new record of $1.3738 Tuesday, its highest level against the dollar since the 13-nation currency started trading in 1999, before retreating to $1.3729. That was still above the euro's previous high of $1.3682 reached on April 27 and the $1.3623 it bought late Monday in New York.

"The dollar is a basket case," said Peter Schiff, president of Euro Pacific Capital Inc. "We are going to pay the piper for years of having the underlying fundamentals of our economy disintegrate beneath our feet."

Given the state of the U.S. economy, he said, the dollar could continue to fall in the coming years against the euro, to $2.50 or even $3.

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