US Dollar Slips To Record Low Against Euro

Greenback also hit by fears of more loss disclosures by financial sector firms.
source: London

The greenback hit record low against the euro yesterday as fears grew that more united states financial firms will be hit by credit market turmoil, reinforcing the expectations of further Federal Reserve interest rates cuts. Such worries came to the fore again after ratings agency Standard & Poor's said on the Thursday that a collateralise debt obligation(CDO) managed by state street global advisers may have started selling assets. CDOs are products packaged from risky mortgages in the US.
A downbeat economic forecast from Fed chairman Ben Bernanke on Thursday cemented market views that the Fed will cut rates more, further eroding the greenback appeal. The euro rose as high as US$1.4738, before trimming gains to reach US$1.4686 by 0807GMT. It is now up more than 11 percent against the euro since the start of the year.