The coming King of the North

Dollar falls to record euro low

The dollar is falling as investors worry about the US economy The dollar has fallen to a record low against the euro as traders bet that further interest rate cuts will be needed to stem a US recession. The euro rose to $1.5135 dollars after buying $1.50 on Tuesday for the first time. Sterling climbed against the greenback too, reaching almost $2. Lower US rates tend to send investors in search of other currencies which give a better rate of return. The view is that UK and eurozone rates will not fall as much as in the US. The UK pound traded at $1.988 in morning European trade after a raft of gloomy economic numbers issued on Tuesday. In addition, Federal Reserve Vice Chairman Donald Kohn suggested that risks of a cooling economy were overshadowing the worries of rising inflation, hinting that US rates will be cut below their current level of 3%...Read More...