Dollar Trades Near One-Week Low Versus Euro

The dollar traded near a one-week low against the euro before an industry report that will probably show a housing slump is slowing the U.S. economy.

The currency was also near a 24-year low versus the Australian dollar after Fannie Mae, the biggest financier of U.S. home loans, reported larger-than-expected losses and the price of crude oil surged past $122 a barrel for the first time. The Federal Reserve has slashed interest rates seven times since Sept. 18 to avert a housing recession, pushing the dollar down about 10 percent versus the euro and yen.

The dollar traded at $1.5512 against the euro at 9:50 a.m. in Tokyo, from $1.5532 in New York yesterday, when it slid to $1.5594, the lowest level since May 1. The dollar traded at 104.87 yen, from 104.77 yesterday.

The National Association of Realtors' index of pending home resales fell 1 percent in March after a 1.9 percent decline in February, according to the median forecast of 30 economists surveyed by Bloomberg News. The report is due at 10 a.m. New York time.

Dollar Trades Near One-Week Low Versus Euro, Bloomberg
5/6/2008 8:23:57 PM