Friday, October 26, 2007

US dollar touches a new euro low

The US dollar tumbled to yet another new low against the euro, as speculation mounted that US interest rates would be cut again next week.

The euro traded as high as $1.4375, breaking the record set last Friday, when one euro bought $1.4319.

The dollar did recover slightly to $1.4369 against the euro bloc currency.

A slew of weak data - including a drop-off in durable goods sales and plummeting demand for new homes - has underlined woes in the US economy.

Rate cut risks

The Federal Reserve is due to meet next week, having last month reduced interest rates from 5.25% to 4.75% in a bid to rejuvenate the economy.

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