|11-04-2004, 05:15 AM||#1|
Angling in the Deep
Join Date: Oct 2003
Location: Texas Riviera, Southern Mountains
Another Day, Same As It Ever Was
Does anyone think things will change now on th economic front?
Dollar Falls as Account Worries Return
By Justyna Pawlak
LONDON (Reuters) - The dollar hit 8-1/2 month lows versus the euro on Thursday as investors resumed selling the U.S. currency due to worries over the country's growing current account deficit, once the presidential election was over.
The re-election of George W. Bush to a second term in the White House did little to change investor sentiment toward the dollar, which has been under pressure for weeks and came within a cent of an all-time low against the euro on Thursday.
The dollar also hit a nine-year low against a basket of currencies on persistent concerns the U.S. economy might not be growing fast enough to attract enough foreign capital to fund the trade gap.
"It's back to the basics," said Trevor Dinmore, foreign exchange strategist at Deutsche Bank in London.
"The event risk has passed and people put on new short-dollar positions (sold dollars)." The euro rose to $1.2855 by 1051 GMT, having climbed from a Wednesday session low of $1.2655. It hit record highs of $1.2927 in February.
The greenback also fell to 1.1909 Swiss francs, matching a recent eight-year low. It also hit a 12-year low against the Canadian dollar.