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Old 10-16-2009, 06:04 PM   #7
peaceandlove
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Join Date: Sep 2008
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Default Re: DOLLAR LOSES Reserve Status to Yen & Euro

Dollar Falls to 14-Month Euro Low

AFP 1 day ago

LONDON — The dollar hit a 14-month low against the euro Thursday on fears that US interest rates would remain super-low for a long time and as a stock market rally sparked appetite for riskier assets, traders said.

At 0615 GMT, the European single currency reached 1.4968 dollars, the highest level since August 2008. The euro later pulled back to 1.4935, up from 1.4922 dollars late in New York on Wednesday.

Against the Japanese currency, the dollar firmed to 89.65 yen from 89.40 yen on Wednesday.

Minutes from the US Federal Reserve's most recent interest rate meeting indicated that US borrowing costs would likely remain low for some considerable time, according to analysts.

Minutes from the September 22-23 meeting published on Wednesday showed Fed officials see a recovery underway from recession but one "restrained" by high unemployment and difficult credit.

"The US dollar remains flat on its back and has all the hallmarks of a patient ready for open heart surgery," said MF Global analyst Manus Cranny.

Continues: http://www.google.com/hostednews/afp...kij1u4P2oxt2fQ
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