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| Version 3 | Version 4 |
|---|---|
| Dollar falls to record euro low | Dollar falls to record euro low |
| (about 1 hour later) | |
| The dollar has fallen to a record low against the euro as traders bet that further interest rate cuts will be needed to stem a US recession. | The dollar has fallen to a record low against the euro as traders bet that further interest rate cuts will be needed to stem a US recession. |
| The euro rose to $1.509 after buying $1.50 on Tuesday for the first time. Sterling climbed against the greenback too, reaching almost $2. | The euro rose to $1.509 after buying $1.50 on Tuesday for the first time. Sterling climbed against the greenback too, reaching almost $2. |
| Lower US rates tend to send investors in search of other currencies which give a better rate of return. | Lower US rates tend to send investors in search of other currencies which give a better rate of return. |
| The view is that UK and eurozone rates will not fall as much as in the US. | The view is that UK and eurozone rates will not fall as much as in the US. |
| The UK pound traded at $1.988 in morning European trade after a raft of gloomy economic numbers issued on Tuesday. | |
| In addition, Federal Reserve Vice Chairman Donald Kohn suggested that risks of a cooling economy were overshadowing the worries of rising inflation, hinting that US rates will be cut below their current level of 3%. | In addition, Federal Reserve Vice Chairman Donald Kohn suggested that risks of a cooling economy were overshadowing the worries of rising inflation, hinting that US rates will be cut below their current level of 3%. |
| Five-year low | Five-year low |
| The latest sign of falling US consumer confidence came from the closely-watched Conference Board survey. | The latest sign of falling US consumer confidence came from the closely-watched Conference Board survey. |
| It said consumer sentiment fell to a five-year low in February because of growing recession fears. | It said consumer sentiment fell to a five-year low in February because of growing recession fears. |
| At the same time, the number of US homes facing foreclosure rose 57% in January, compared with the same month of 2007. | At the same time, the number of US homes facing foreclosure rose 57% in January, compared with the same month of 2007. |
| Last month, the Fed slashed interest rates to 3% as it tried to prevent the US economy falling into recession. | Last month, the Fed slashed interest rates to 3% as it tried to prevent the US economy falling into recession. |
| "With so few consumers expecting conditions to turn around in the months ahead, the outlook for the economy continues to worsen and the risk of a recession continues to increase," said Lynn Franco, a director of the Conference Board's consumer research centre. | "With so few consumers expecting conditions to turn around in the months ahead, the outlook for the economy continues to worsen and the risk of a recession continues to increase," said Lynn Franco, a director of the Conference Board's consumer research centre. |