Dollar Breakdown Continues, New Lows
November 23rd, 2007Via: Bloomberg:
The dollar dropped below 108 yen for the first time since 2005 and fell to a record low against the euro on speculation deepening U.S. credit-market losses will prompt the Federal Reserve to cut interest rates.
The currency headed for its biggest weekly decline against the euro in a year as traders raised bets that the Fed will lower borrowing costs on Dec. 11. The yen headed for a weekly gain against the dollar as concern turmoil in credit markets will slow global growth spurred investors to sell higher- yielding assets bought with money borrowed in Japan.
“Dollar weakness is going to continue,” said Stephen Halmarick, co-head of economic and market analysis in Sydney at Citigroup Australia, a unit of the largest U.S. bank by assets. “The U.S. economy is going to underperform and the Fed is going to be easing.”
