The Dollar Weakens

The dollar weakened for a second straight day as oil surged above $119 a barrel and Federal Reserve Bank of Dallas President Richard Fisher said inflation is starting to grip U.S. consumers.

The euro advanced 0.5 percent to $1.5988 at 1:07 p.m. in New York, from $1.5912 yesterday. It touched $1.6019, the highest since Europe's currency debuted in 1999. The euro traded at 164.32 yen, unchanged from yesterday. The dollar dropped 0.5 percent to 102.76 yen, from 103.27.

The dollar extended its drop against the euro after a U.S. industry report showed sales of previously owned homes fell in March. Purchases dropped 2 percent to an annual rate of 4.93 million, from 5.03 million in February, the National Association of Realtors said today in Washington.

The Dallas Fed's Fisher said yesterday in a Fox Business Network interview airing today that inflation from rising food and energy prices has been so persistent that it's starting to affect consumers' expectations for future prices.

The Dollar Weakens, Bloomberg
4/22/2008 10:17:29 AM