USD in fourth record low versus euro

Story link: USD in fourth record low versus euro

The US dollar hit a new low against the euro for the fourth session in a row on Tuesday, trading at $1.4153 versus the shared currency at one point in the session and at $1.4146 in late afternoon in New York.

The decline came on the heels of two housing reports that showed that existing home sales were lower in August and that home values dropped the most in 16 years in July.

The National Association of Realtors said that August sales of existing homes dropped 4.3 percent to an annual pace of 5.5 million.

These reports, along with a Consumer Confidence Index from the Conference Board that showed confidence down more than expected in September, bolstered the case for another US interest rate cut in October and hurt the greenback.

Elsewhere, the dollar dropped to ¥114.55 versus the yen but was higher versus sterling and the Canadian dollar.

The pound was hurt by concerns following the run on Northern Rock (LSE: NRK) that deposit insurance in the UK might not be adequate to guarantee all customers’ deposits up to £100,000, as well as by a report from the International Monetary Fund that said the UK housing market could not sustain its stability.

The IMF report compared the UK non-conforming mortgage market to the US subprime sector.