Chimp_junta: Clearing Brush While the Dollar Goes To Hell
Investors are betting that the European Central Bank (ECB) will not do anything to weaken the euro, while the US is thought to favour a declining dollar. (<---Oh, REALLLLLLLLLY?!?!?)
The US is struggling with a ballooning trade deficit and analysts said one of the easiest ways to fund it was by allowing a depreciation of the dollar.
They have predicted that the dollar is likely to fall even further.
The US currency was trading at $1.364 per euro at 1800 GMT on Monday. This compares with $1.354 to the euro in late trading in New York on Friday, which was then a record low.
It has lost 7% this year, while against the Japanese yen it is down 3.2%.
Traders said that thin trading levels had amplified Monday's move. "It's not going to take much to push [the dollar] one way or the other," said Grant Wilson of Mellon Bank.