Dollar Trades Near One-Week Low Against Euro

The dollar traded near its lowest in a week against the euro before a government report that will probably show a drop in U.S. retail sales, bolstering speculation the economy is headed for a recession.

The currency also traded near a one-week low versus the pound after Federal Reserve Bank of San Francisco President Janet Yellen said a housing slump will weigh on consumer spending.

The dollar traded at $1.4571 per euro as of 10:59 a.m. in Tokyo from $1.4584 in New York yesterday, when it fell to $1.4615, the lowest since Feb. 7. Against the pound, the dollar was at $1.9577 from $1.9598. It fell yesterday to $1.9634, the lowest since Feb. 6. The dollar was at 107.27 yen from 107.31. The euro traded at 156.34 yen from 156.50.

The dollar has fallen against 15 of the 16 most-traded currencies this week before the U.S. Commerce Department report that will show sales at U.S. retailers fell 0.3 percent last month after decreasing 0.4 percent in December, according to the median estimate of economists surveyed by Bloomberg News.

Dollar Trades Near One-Week Low Against Euro, Bloomberg
2/12/2008 6:43:31 PM