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Sun, May 25, 2008 - Page 10 News List

Dollar hits one-month low against euro


The US dollar fell to a one-month low against the euro on speculation a surge in oil prices to a record will accelerate inflation while slowing economic growth in the US, the world’s biggest oil importer.

The currency weakened to the lowest level in almost two weeks versus the yen before a government report that will probably show falling US house prices. The Australian dollar traded near its highest since being allowed to trade freely in 1983 as investors sought the nation’s higher-yielding debt.

The dollar fell to US$1.5801 per euro, the lowest level since April 24, before trading at US$1.5799 at 9:53am in Tokyo from US$1.5795 in New York on Friday. The currency slid to ¥102.79, the lowest level since May 12, before trading at ¥102.83 from ¥103.05. The euro fell to ¥162.46 from ¥162.76.

The US currency may fall to US$1.59 per euro and ¥101 in one month, Umemoto said.

The yen remained higher against the dollar after a Japanese government report showed export growth quickened last month. Overseas shipments, the driver of more than half of last quarter’s expansion, rose 4 percent from a year earlier.

The dollar traded at US$1.9723 against the British pound from US$1.9732, and was at 1.0245 versus the Swiss franc from SF1.0250. The Dollar Index traded on ICE futures in New York, which tracks the dollar against currencies of six trading partners, fell to 71.932, from 71.938 on Friday.

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