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http://www.bloomberg.com/apps/news?pid=20601087&sid=ar3a9gqZqBLk&refer=worldwideDollar Falls to Record Low Against Euro; Fed May Cut Rates
By Bo Nielsen and Min Zeng
Nov. 6 (Bloomberg) -- The 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 dollar fell against high-yielding currencies, including 1.2 percent versus the Brazilian real and 1 percent against South Africa's rand.
``The dollar is undermined by growth and interest-rate differentials,'' said Samarjit Shankar, director of global strategy for the Global Markets group in Boston at Bank of New York Mellon, the world's largest custodian bank with over $20 trillion in assets under administration. ``The U.S. is the epicenter of the subprime crisis.''