US dollar nears record low versus euro

Story link: US dollar nears record low versus euro

The US dollar was weaker versus the euro and all other major currencies on Monday on continuing speculation that interest rates in the United States will drop again soon.

Many analysts are convinced that the main US interest rate will move lower than the Eurozone interest rate for the first time in three years.

The declines also came ahead of a report due Tuesday from the US Commerce Department that is expected to show that retails sales did not rise in December.

The greenback neared its record low versus the shared currency as it fell as low as $1.4915 to the euro before trading at $1.4878 to the euro at just before 1 p.m. in New York.

At the same time, the US dollar traded at ¥108.0950 to the dollar.

Meanwhile, the euro moved little in relation to the yen at ¥160.8236 to the euro.

The Eurozone currency was higher against 12 of 16 major currencies and hit a new high at 76.08p to the euro in relation to the pound before trading at 76.01p to the euro in early afternoon trade in New York.

The pound was weaker against all but two major currencies on sentiment that UK interest rates will be around 4.75 percent by September.

It took $1.9573 to buy a pound at early afternoon in New York, while a pound cost ¥211.5797.

The Swiss franc gained on a retreat from risk, hitting a record high versus the greenback and traded at SFr1.0922 to the dollar at around 1 p.m. in New York.