Dollar Falls to Record Low Against Euro

The U.S. dollar fell to a record low against the euro on speculation financial-company losses from U.S. subprime-mortgage defaults will grow, prompting the Federal Reserve to cut interest rates for a third time this year.

The U.S. dollar declined versus all 16 of the most-actively traded currencies after Fed Governor Randall Kroszner said conditions for subprime-mortgage borrowers may worsen. The European Central Bank is forecast to keep its benchmark interest rate unchanged this week.

The U.S. currency dropped to an all-time low of $1.4570 per euro before trading at $1.4568 at 9:14 a.m. in New York, from $1.4469 late yesterday.

The U.S. dollar fell to $1.0782 against its Canadian counterpart, from $1.0714 yesterday, and earlier to a 26-year low of $2.0907 against the pound. The dollar traded at 114.46 yen, from 114.55.

Dollar Falls to Record Low Against Euro, Bloomberg
11/6/2007 6:50:43 AM