Anorak News | Dollar At All Time Low

Dollar At All Time Low

by | 18th, July 2007

BECKHAM should have got paid in pounds:

July 18 (Bloomberg) — The dollar fell to a record low against the euro and dropped versus the yen after Bear Stearns Cos. reported hedge fund losses, fueling speculation investors will spurn U.S. assets as the economy slows.

The yen also rose against the euro, British pound and New Zealand dollar as investors scaled back carry trades, where they buy higher-yielding securities with money borrowed in Japan. Financial industry losses caused by subprime mortgage defaults may be addressed by Federal Reserve Chairman Ben S. Bernanke when he testifies to Congress today.

“The subprime woes may weigh on the broader U.S. economy,” said Yuji Saito, head of the foreign-exchange sales department at Societe Generale SA in Tokyo. “There’s a bias for selling the dollar.”

The dollar declined to an all-time low of $1.3833 against the euro from $1.3781 in New York yesterday, and traded at $1.3809 at 7:47 a.m. in London. It dropped to 121.71 yen from 122.34. The yen rose to 168.09 per euro from 168.59. The U.S. currency may decline to $1.3830 per euro and 121.50 yen today, Saito said.

The dollar fell against 13 of the 16 most-active currencies today after Bear Stearns told investors in one of its hedge funds they won’t get any money back. It reached a 26-year low of $2.0548 against the pound and weakened to 87.85 cents against the Australian dollar, the lowest since February 1989.

How much for New Mexico?

Posted: 18th, July 2007 | In: Reviews Comment (1) | TrackBack | Permalink