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Last Updated: Wednesday, 26 September 2007, 22:37 GMT 23:37 UK
Dollar falls to another euro low
Euro coins on dollar note
The value of the dollar fell after the Fed cut US interest rates last week
The dollar has fallen to yet another all-time low against the euro, after further weak US economic data.

Figures showed that US consumer confidence has fallen to a near two-year low, while house prices have seen the sharpest drop in 16 years.

Analysts said the data boosted expectations that the Federal Reserve will cut interest rates still further.

In early trading on Wednesday, the euro hit a high of $1.4162, before pulling back to $1.4131 by 2230 GMT.

'Anti-dollar momentum'

The Fed cut US interest rates to 4.75% from 5.25% last week, in a move aimed at restoring confidence in both the housing and financial markets.

Graph showing the Euro v the dollar

It was the first US rate cut in four years.

"Momentum to sell the dollar remains strong," said Hideaki Inoue, foreign exchange manager at Mitsubishi UFJ Trust and Banking in Tokyo.

In further bad news for the US economy on Wednesday, orders for durable goods, which include everything from washing machines to commercial jets, fell by a bigger-than-expected 4.9%.

The high value of the euro has caused concern among European exporters, as it makes their products more expensive in the US.

Planemaker Airbus has already warned that jobs could be affected if the euro remains so strong.


SEE ALSO
Euro sets yet another dollar high
24 Sep 07 |  Business
Jobs fears as euro gets stronger
21 Sep 07 |  Business
Dollar hits new low against euro
20 Sep 07 |  Business
Airbus costs knock EADS profits
26 Jul 07 |  Business
Yuan hits new high versus dollar
25 Jul 07 |  Business
European economy 'sound' - Trichet
11 Sep 07 |  Business



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