Dollar touches record low against euro yet again
March 12, 2008
As the unemployment report for the month of February is scheduled to come out on the 7th of March the US dollar touched another record low against the Euro on Friday. The jobless report that is going to come is predicted to be the highest ever in the last two years. This is one of the main reasons for the drop in value of dollar against the fifteen nation currency. The recent drop in value of dollar reinforces the belief that the US economy is heading towards or is already in a recession.
The currency on the seventh reached its lowest level against the euro. Furthermore the continuing losses the credit market was incurring strengthened the belief of investors that the Federal Reserve was going to cut the interest rates by 75 points in this month. However, the Greenback was finally able to spring back from the lowest ever value against the Japanese yen in the last three years. The dollar managed to jump back as a result of the speculation that the Bank of Japan is going to reduce the interest rates in 2008 in an effort to incite economic growth in the nation.
The condition of the dollar which is pretty weak at the moment is quite extraordinary. It is believed by many that the latest sell-off the greenback took is not only definitive but also vindicated by the various economic policy changes. The US dollar dropped to $1.5395 per euro, which happens to be the lowest value at which dollar has stood ever since the currency came into existence in the year 1999. The dollar was placed at 102.76 yen after jumping from the three year low of 102.46 yen when trading opened today.
According to the studies conduced by many economists the Bank of Japan is most likely to decrease the rates towards the end of the year. As news about this came out the yen took a slide from 157.92 per euro to 158.04 per euro. It is predicted that the value of yen is proceeding towards a weekly low. The central bank of Japan however kept borrowing costs on hold.
The dollar also took a fall by a very large amount in front of the Swiss Franc to reach an all time low of 1.0211. The greenback also took a fall of 1.1 percent against the English pound. Norwegian Krone is another currency in fro of which the Dollar fell by 1.7 percent. The currency experts in the country continues to maintain that the US currency will go ahead with its decline to reach somewhere around $1.55 per euro by the end of June. The latest value with which the experts have come out is far more than the previous forecast of $1.41 per euro. Another forecast is the dollar is going to drop to almost 97 yen.
The jobless report which he government is going to come out with is predicted to have figures which will show that the number of unemployed persons in t nation is going to increase by almost 5 percent. It was the news of this report which led to the massive drop in the dollar’s value.