Dollar May Extend Loss Versus Euro on Growth, Credit Concerns

Source: Bloomberg

Dollar May Extend Loss Versus Euro on Growth, Credit Concerns

By Min Zeng

Nov. 9 (Bloomberg) -- The dollar is poised for a fifth straight weekly loss versus the euro on speculation slowing growth and widening credit-market losses will push the Federal Reserve to reduce borrowing costs a third time this year.

A report today is forecast to show consumer confidence weakened to the lowest since May 2006 amid the biggest housing slump in 16 years. The dollar fell to within a cent of its record low yesterday after Fed Chairman Ben S. Bernanke said the economy is likely to ``slow noticeably.''

``The dollar will continue to lose its appeal,'' said Robert Fullem, vice president of U.S. corporate currency sales at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. ``Bernanke's crystal ball is foggy. The growth picture is worrisome and the Fed needs to cut rates further.''

The dollar traded at $1.4676 per euro and 112.59 yen at 7 a.m. in Tokyo. The U.S. currency reached 112.10 yesterday, the lowest since Aug. 17. A day earlier it touched $1.4731, the weakest since the European currency started trading in January 1999. The euro bought 165.26 yen.

The U.S. currency has lost 1.9 percent against the yen and 1.1 percent versus the euro this week, extending its decline this year to 5.3 percent and 10 percent, respectively.

The Reuters/University of Michigan preliminary consumer confidence index for November probably fell to 80, from 80.9 in October, according to a Bloomberg News poll. The index is scheduled for release at 10 a.m. New York time.



Read more: http://www.bloomberg.com/apps/news?pid=20601083&sid=anjeFFr0.ZCc&refer=currency

It's beyond the pale.

This is how we are financing the Republican business corruption machine . . . oops, I mean the War.