Dollar in new low against euro

Story link: Dollar in new low against euro

The dollar saw new lows against the euro and sterling early in the London session on Wednedsay after worries about the subprime mortgage sector intensified.

The greenback was at $1.3833 versus the euro at one point, a new record low, while it dropped to a new 26-year low against sterling at $2.0548 before it recovered slightly to trade even against the euro at $1.3783 in late morning trade in London.

At the same time, sterling remained 0.2 percent higher versus the US currency at $2.0510 after some declines when the minutes of the most recent Bank of England meeting showed that the vote to raise interest rates was a 6 to 3 split.

The pound still managed at 0.1 percent gain to £0.6725 versus the shared currency.

Meanwhile, the yen was stronger after the US dollar and the euro each dropped 0.1 percent versus the Japanese currency, to ¥122.02 and ¥168.23 respectively.