US dollar sinks to fresh lows

LONDON - The dollar yesterday sank to a new record low against the euro beyond $1.53, helping drive gold to an all-time high and rattling equity investors worried about the competitiveness of European companies.

By (Reuters)

Published: Fri 7 Mar 2008, 9:54 AM

Last updated: Sun 5 Apr 2015, 1:17 PM

Wall Street looked set for a weak start but Japanese shares earlier gained nearly two per cent.

The European Central Bank, as expected kept interest rates steady at 4.0 per cent. Higher rates in Europe over the United States, which is easing monetary policy, are a main driver of euro strength.

“There are pretty clear expectations for a widening in interest rate differentials, keeping the dollar at a disadvantage,” said Tomoko Fujii, head of economics and strategy for Japan at Bank of America in Tokyo.

The euro rose as high as $1.53459, a new record, before dropping back slightly to $1.5317. The dollar also fell to a record low of 73.101 against a basket of six major currencies, although it later recovered

a bit. It was down 0.6 per cent at 103.46 yen.

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