Dollar falls to record Euro low
الشروق أونلاين
-
-
1460
-
0
The dollar has fallen to a fresh record low against the euro, after weak economic data renewed fears that the US economy may be facing recession.After figures showed a sharp rise in US home foreclosures and another fall in American consumer confidence, the euro hit an all-time high of $1.50.
Traders say the Federal Reserve may have to cut interest rates again, which would further undermine the dollar.
Meanwhile, US crude oil rose $2.20 to a fresh record of $101.43 a barrel.
The latest sign of falling US consumer confidence came from the closely watched Conference Board survey.
It said consumer sentiment fell to a five-year low in February due to growing recession fears.
At the same time, the number of US homes facing foreclosure rose 57% in January compared with the same month of 2007.
Last month the Fed slashed interest rates to 3% as it tried to prevent the US economy falling into recession.
“With so few consumers expecting conditions to turnaround in the months ahead, the outlook for the economy continues to worsen and the risk of a recession continues to increase,” said Lynn Franco, a director of the Conference Board’s consumer research centre.
US interest rate cuts generally lower the value of the dollar as traders move to currencies with a higher rate of return.
