The dollar hit record lows versus the euro and Swiss franc while extending its multi-year trough against the yen Wednesday in New York. Trading took place amid increased speculation that a slowing US economy will prompt another rate cut from the Federal Reserve before the end of the year. The buck dropped to a record low against the euro, plunging to 1.4865 by 3:30 pm ET. On Tuesday, the Fed said that that the housing slump, tighter credit conditions and high energy costs would likely slow U.S. growth next year to between 1.8 percent and 2.5 percent. The dollar slipped to a fresh 2 1/2 year low versus the yen on Wednesday, dropping to 108.24 by 6 am ET. The pair saw little movement from there, with traders offering litle reaction to the day's economic developments. The greenback was little changed after a choppy session versus the sterling on Wednesday. The dollar improved to 2.0525 in early action, but drifted lower over the course of the session to finish near 2.0665. Against the Swiss franc, the dollar extended its record low from the previous session, easing to 1.1018 by the end of the day. On the other hand, the dollar gained a bit of ground on Canada's loonie, at one point reaching .9923. The dollar has not been at par with the loonie since early October.
November 21, 2007 3:34 PM