Dollar Declines


The dollar fell the most in more than a month against euro after the International Monetary Fund said the U.S. housing slump still poses ``serious risks'' to financial markets.

The currency extended declines after a government report showed prices paid to U.S. producers excluding food and fuel rose more than forecast in April.

The dollar declined to 103.91 yen at 8:36 a.m. in New York, from 104.33 yen late yesterday. The currency slid to $1.5657 per euro, from $1.5510. The euro was at 162.68 yen, from 161.81.

The U.S. currency slipped to $1.9644 against the British pound from $1.9489, and declined to 1.0416 versus the Swiss franc from 1.0533. The Dollar Index traded on ICE futures in New York, which tracks the dollar against currencies of six trading partners, fell to 72.5214 from 73.045 yesterday.

The euro gained against the dollar after a government report showed German producer-price inflation, an early indicator of price pressures in the economy, accelerated to the fastest pace in almost two years in April on energy costs.

Producer prices rose 0.2 percent in April after jumping 1.1 percent the prior month. The 0.4 percent gain in so-called core prices was twice as big as anticipated and followed a 0.2 percent increase in March, the Labor Department said today in Washington. A drop in energy costs and unchanged food expenses held overall prices to a 0.2 percent gain.


TradingEconomics.com, Bloomberg
5/20/2008 6:41:51 AM