Euro Hits New Record Against Dollar
Berlin: The euro hit a new record high versus the US dollar today, rising as high as $1.3878 amid assumption that the Federal Reserve will slash rates of interest shortly.
The 13-nation euro cracked its preceding record of $1.3852, attained in July. By early morning in Europe, it had settled back to some extent to $1.3867.
The dollar has come under new force since the US Labor Department released unpredictably poor August jobs data on Friday.
That report reinforced conjecture that the Fed will cut back interest rates at its September 18 meeting.
Inferior interest rates, used to jump-start the financial system, can dampen a currency by giving capitalists lower returns on investments denominated in it. The majority of economic experts anticipate the Fed to relieve credit policy.
Ben Bernanke, Fed Chairman presented no hints on the Fed’s aims during a speech in Berlin on Tuesday.
The dollar was weaker on Wednesday against the British pound that jumped to $2.0345 from its level of $2.0317 in New York on late Tuesday.
It also fell against the Japanese currency, even as Prime Minister Shinzo Abe declared that he would resign, putting an end to his troubled year-old administration.. The dollar slid to 113.92 yen from 114.30 yen.