Reply #19: Dollar hits record euro low, bounces [View All]

[UpInArms]

http://cbs.marketwatch.com/news/story.asp?guid=%7B862C872F%2DF961%2D4CA7%2DBA20%2DA6CAEBB3875B%7D&siteid=mktw

CHICAGO (CBS.MW) -- The dollar probed a record low against the euro Thursday as ongoing concerns for U.S. deficits were compounded by disappointing U.S. economic data.

The dollar briefly extended its declines against the euro and the yen after a spate of U.S. economic data, currency traders said.

The greenback has since moved back to pre-report levels, but remained lower against these key rivals on the day. A trio of reports showed mixed results for U.S. economic growth, with the focus on a decline in durable goods orders outside the volatile category of transportation orders.

The euro was last at $1.3464. It traded to an all-time high of $1.3482 earlier. The common currency is up 0.6 percent against its U.S. counterpart compared with late U.S. trade Wednesday.

The dollar fell to 103.93 yen, down 0.2 percent on the day.

"The trading environment is growing thinner by the day, which exacerbates small moves in the dollar," said Charmaine Buskas, currency analyst with Economy.com.

<snip>

The greenback continues to focus on the sustainability of U.S. trade and budget deficits.

The currency market also remains convinced the Bush administration will do little to stand in the way of a depreciating U.S. currency, even as officials pledge their support for a "strong" dollar.

<snip>

But the report's other details weren't as rosy.

Excluding transportation, durable goods orders fell 0.8 percent in November after falling 1.3 percent in the prior month.

Overall orders fell a revised 0.9 percent in October, a steeper decline than the 0.4 percent drop initially reported. See Economic Report.

...more...