Thursday, March 13, 2008

Dollar hits all-time low against euro and yen

The dollar fell to its weakest ever
International Herald Tribune

NEW YORK: The dollar fell to the weakest ever against the euro and to an eight-year low vs. the yen after a government report showed the United States unexpectedly lost jobs for a second straight month in February.

The U.S. currency touched an all-time low against the euro for the eighth trading day in nine as the report bolstered speculation that the Federal Reserve will cut the benchmark interest rate as much as a full percentage point to 2 percent at a policy meeting scheduled for March 18.

"There is the view that we're quickly sinking into recession and that the Fed only has a limited ability to offset that," said Michael Woolfolk, senior currency strategist in New York at the Bank of New York Mellon. "We certainly see more dollar weakness from here."

The dollar traded at $1.5426 at 8:44 a.m. in New York from $1.5380 Thursday, and touched $1.5459, the weakest level since the euro's debut in 1999. The U.S. currency traded at ¥101.68 from ¥102.67 Thursday, and fell to the lowest since January 2000.

The economy lost 63,000 jobs in February, after a decline of 22,000 in January, the Labor Department said.

See: Dollar hits all-time low against euro - International Herald Tribune

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