Posted on 09/02/2008 12:19:45 PM PDT by NormsRevenge
LONDON (AFP) – The euro on Tuesday slid below 1.45 dollars for the first time since February as the market anticipated lower interest rates in the eurozone and stronger growth in the United States, analysts said.
In early London trade, the European single currency dropped to 1.4467 dollars, the lowest point since February 12.
It rose from this level to trade at 1.4524 dollars in late European trade, compared with 1.4606 dollars late on Monday in London.
Elsewhere, the yen fell slightly after Monday's abrupt resignation of Japanese Prime Minister Yasuo Fukuda.
The pound meanwhile struck a record low versus the euro for the second day in a row after the Organisation for Economic Cooperation and Development (OECD) forecast a recession in Britain this year.
Sterling also reached the lowest point against the dollar for more than two years.
Part of the weakness of the euro against the dollar was explained by expectations that the European Central Bank would need to consider a cut in interest rates sooner rather than later.
"If oil prices resume their decline the assumption that the ECB will at the very least reverse July's rate hike will mount and weigh further" on the euro, Calyon economist Stuart Bennett said on Tuesday.
Oil prices, which have risen sharply this year and stoked inflation, fell sharply on Tuesday to below 105 dollars for the first time in four months.
The European Central Bank is widely expected to leave its main lending rate at 4.25 percent on Thursday despite growing signs of a sharp economic slowdown across the eurozone, analysts said.
(Excerpt) Read more at news.yahoo.com ...
Democrats deeply saddened!
Does this mean we are not in a depression? </sarcasm>
We’re DOOMED! DOOMED!
We need the Change Messiah!
Bush’s fault
And so are the Russians.
A euro coin and a US dollar bill. The euro on Tuesday slid below
1.45 dollars for the first time since February as the market
anticipated lower interest rates in the eurozone and stronger
growthin the United States, analysts said.
(AFP/File/Joel Saget)
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