Dollar Falls Against Euro, Canadian Dollar
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
The dollar fell to the lowest versus the euro since the European currency’s inception in 1999 on speculation the Federal Reserve will continue to reduce interest rates, dimming the allure of American assets.
“It seems like the world is dumping the dollar,” the chairman of FX Concepts Inc., a New York firm that manages $12.1 billion in currencies, John Taylor, said. “The U.S. central bank is cutting its interest rate. We have sold the dollar and will continue to do so. My preference is to sell the dollar against European currencies.”
Losses in the dollar accelerated after London’s Daily Telegraph newspaper reported, citing analysts, that Saudi Arabia may drop its currency’s link to the dollar. The nation is likely to keep the peg, an adviser to King Abdullah said. The euro rose above $1.40 for the first time since its introduction. The Canadian dollar earlier equaled its American counterpart.
The American currency fell 0.8% to $1.4067 per euro at 4 p.m. in New York and earlier reached a record low of $1.4098. The American currency has lost 6.2% this year versus the euro.
The dollar also fell 1.4% to 114.42 yen, and 1.4% to 99.88 American cents against the Canadian dollar.
