Greenback in fresh record low

Source: Exec Digital USA

Date :10/22/2007 4:16:04 AM

THE US dollar slumped to a record low against a basket of major currencies on Monday as traders sold the dollar after the fall in US stocks.

The euro climbed to $1.4347 on electronic trading platform EBS in early Asian trade, hitting its highest level since the single currency's introduction in 1999.

Traders said global share markets have taken their cue from Wall Street, which marked its biggest fall in two months on Friday - the twentieth anniversary of the 1987 stock market crash.

The low was weighted following the failure of the Group of Seven finance chiefs to come up with words of support for the currency after Friday’s meeting in Washington.

"The G7's statement effectively gives a green light to continue selling the dollar," Michael Woolfolk, senior currency strategist at the Bank of New York Mellon, said over the weekend.

Export

Wall Street weakness prompted a broad sell off in Asian stocks with exporters hurt by the weaker dollar and growing worries about the health of the U.S. economy, the region's top export destination.

Several Asian markets, including Tokyo, fell more than two percent in early trading as investors dumped exporters, such as Canon Inc, and Honda Inc.

Investors are also concerned a U.S. housing slump is spreading to other parts of the U.S. economy.

Following a weak US report last week, Caterpillar Inc, the world’s top maker of earth-moving construction and mining equipment, said on Friday several key U.S. industries that it serves were in recession.

October 22 2007