Dollar Falls Against Euro and Yen


The dollar fell against the euro and the yen on speculation officials from the Group of Seven nations are unlikely to agree on a plan to support the U.S. currency when they meet today.

The U.S currency also weakened against the British pound today before an industry report that will probably show consumer confidence fell to a 16-year low. The yen rose after General Electric Co. said its first-quarter profit fell amid disruptions in financial markets, eroding demand for higher-yielding currencies funded with loans in Japan.

The dollar weakened to $1.5819 per euro at 7 a.m. in New York, compared with $1.5742 yesterday and $1.5737 on April 4. It touched a record low of $1.5913 yesterday. The U.S. currency declined to 101.41 yen, from 101.95 yesterday and 101.47 a week ago. The yen was at 160.38 per euro, from 160.51 yesterday and 159.69 a week earlier.

The Group of Seven, which comprises the U.S., Japan, Germany, the U.K., France, Italy and Canada, hasn't intervened in currency markets since it supported the euro in 2000. Finance officials from the nations will speak at a press conference at 6:45 p.m. in Washington today.

The U.S. currency slipped to $1.9731 against the British pound from $1.9707 in New York, and slid to 1.0019 versus the Swiss franc from 1.0082. The Dollar Index traded on ICE Futures in New York, which tracks the currency against those of six trading partners, fell to 71.854 from 72.117 yesterday.


TradingEconomics.com, Bloomberg
4/11/2008 6:43:17 AM