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As analysts were waiting to see how fast the euro reaches parity against the U.S. dollar, one foreign exchange pro told CNBC he saw the common currency dropping even further, with the dollar strengthening another 20 percent. George Saravelos, global co-head of FX research at Deutsche Bank, said the euro could fall to 85 U.S. cents against the greenback.

The euro slipped to a fresh 12-year low against the US dollar on Thursday as the common currency continued to buckle under pressure felt since the European Central Bank launched its massive quantitative easing scheme at the start of the week.

TOKYO, May 1 (Reuters) - The dollar struck a seven-month low against the yen and a one-year low against the euro on Monday, extending a slide as the Federal Reserve appears set to soon end a two-year run of credit tightening. A renewed focus on U.S. deficits after last month's meeting of Group of Seven industrialised powers, worries about Iran's nuclear ambitions and deteriorating technical signals have pummeled the dollar across the board. The yen gained across the board on solid buying by foreign hedge funds and investment banks, while some Japanese players squared positions heading into the country's Golden...

By Caren Bohan and Glenn Somerville 25 minutes ago President George W. Bush looks increasingly likely to replace Treasury Secretary John Snow and is considering former lawmakers and some Wall Street executives to succeed him, Republican sources said on Monday. The Bush administration wants a more compelling figure than Snow to lead its effort to highlight the economy's strength in the hope of bolstering Republican chances in November's congressional elections, the sources said. A Republican in frequent contact with the White House said there have been discussions about trying to attract Goldman Sachs Chief Executive Henry Paulson for the job,...

LONDON (Reuters) - The dollar hit a 27-month high against the yen on Monday and edged closer to recent two-year lows versus the euro and sterling as greenback buying on yield advantage gathered momentum after a long U.S. weekend. In the absense of major data on Monday, investors, coming back from the Thanksgiving holiday weekend, pushed the dollar higher in anticipation of further rises in U.S. interest rates. The euro kept a low profile as investors awaited European Central Bank speakers including chief Jean-Claude Trichet ahead of a widely-expected 25 basis point rate hike this week. But the outlook beyond...

Technical Overview · British Pound Heads To 1.7000· Swiss Franc Sees 1.3500 In Its Future· New Zealand Dollar Fails To Capture .6900 Traders Corner:Reality or wishful thinking, it’s a very delicate balance when it comes to trading. As a trader I always learned not to let the wishful thinking cloud my judgment. I never let such notions as hopes and dreams distort the reality of the market. At one point when I found myself grasping at straws in a sinking trade I realized that no matter what I think, wish or hope, the market will do what its need to...

TOKYO (Reuters) - The dollar clung close to a two-year high against the euro and a 27-month peak versus the yen on Tuesday as more investors flock to the U.S. currency for its widening yield advantage. The yen came under pressure after Japanese Prime Minister Junichiro Koizumi made a rare comment on central bank policy, saying it was too early for the Bank of Japan to end its ultra-loose "quantitative easing" until deflation is defeated. Koizumi's remarks on Monday added to a chorus of government officials calling for the BOJ, which gained political independence just in 1998, to work with...

LONDON (Reuters) - The dollar steadied versus the euro and yen on Thursday following sharp gains across the board in the previous session driven by profit-taking on bets against the long suffering U.S. currency.Unexpectedly strong jobs data from Australia appeared to counter the rising market belief the weak dollar was hurting major economies and forcing central banks to stop interest rate hikes, which in turn would bolster the greenback's appeal. Such arguments, driven by Canada's and Australia's decision earlier this week to hold rates unchanged, were seen as triggers for the dollar's rebound from record lows against the euro...

LONDON (Reuters) - The dollar rose one percent against the euro and the yen on Wednesday as investors bought the U.S. currency back in the run-up to the year-end and eyed the impact of the dollar's weakness on other economies.Worries about the United States' ability to fund its huge currrent account deficit have led to persistent weakness in the dollar, taking it to fresh record lows against the euro on Tuesday and five-year lows against the yen last week. But investors are looking to take profits on the climb of a broad spectrum of currencies against the dollar, while...

Short term interest rates have dropped to a 45 year low at a time when tax revenues, as a percent of GDP, are at a 44 year low; budget deficits are exploding upwards; the economy still has capacity utilization under 75% and the delightful increase in corporate profits are from cost cutting not revenue growth or the need for new investment. Indeed, there is virtually no return on capital investment in this country. If there was a return on capital, new factories would be built here in the U.S., not in Asia. The return on capital in Asia comes from...

<p>October 21, 2003 -- An economic foot-in-mouth disease could still be lurking in the water at the Treasury Department.</p> <p>In less than a year, a second Treasury Secretary is making recurring public misstatements about America's dollar policy.</p> <p>John Snow, the railroad heavyweight who took over the top economic post eight months ago, spent his weekend dancing around the latest public flip-flop on the White House's currency strategy.</p>

Fact and CommentSteve Forbes, 06.09.03, 12:00 AM ET Deflation: The Fast, Easy Cure The Federal Reserve, alarmed at the relentless downward pressure on business' ability to profitably price its products and services, recently declared its concern about deflation. Our central bankers are casting worried glances at Japan's debilitating deflationary experience of the past 12 years and are anxiously wondering if we're in for the same. The worries of Greenspan & Co. are welcome--but about five years overdue. Our deflation began in the late 1990s, when the Fed inadvertently tightened monetary policy. Commodity prices collapsed, and deflation then began to work...

The National Association of Manufacturers has been campaigning against an 'over-valued dollar' for the last year. As recently as June 20, when the Department of Commerce reported that the April trade deficit had been a record $35.9 billion, NAM Chief Economist David Huether argued, "April's record trade deficit is the result of two fundamental factors: the U.S. recovery is outpacing growth abroad, and the high value of the dollar, which has undercut American firms' competitiveness." Now that the dollar is dropping on world markets, most economists are expressing alarm rather than joining NAM in cheering the trend. The reason for...