Dollar Close to Record Low Versus Euro

The dollar traded close to the weakest ever against the euro on speculation the slumping U.S. economy will cause banks to report more losses from the collapse of the subprime-mortgage market.

The euro has gained 16 percent against the dollar in the last year and reached a record $1.5275 today, threatening to damp exports just as the U.S. economic slowdown dims the region's growth outlook. The euro's advance complicates the work of the European Central Bank, which meets on interest rates this week.

The dollar touched as weak as $1.5275 per euro, from $1.5179 on Feb. 29, before trading at $1.5203 at 7:03 a.m. in Tokyo.

The U.S. currency tumbled 2.3 percent against the euro in February, the most since September. The synthetic euro, which estimates the European currency's value before 1999, yesterday rose to the strongest level since at least January 1989, when Bloomberg's data on the measure began.

Dollar Close to Record Low Versus Euro, Bloomberg
3/3/2008 4:23:13 PM