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| Dollar plunges to fresh euro low | |
| (40 minutes later) | |
| The US dollar fell to a new low against the euro after the latest piece of US economic data. | The US dollar fell to a new low against the euro after the latest piece of US economic data. |
| Labour department figures showed the number of people seeking unemployment benefit had leapt by the largest amount since February. | |
| The data boosted expectations that US interest rates could be cut further before the end of the year. | The data boosted expectations that US interest rates could be cut further before the end of the year. |
| The euro hit a high of $1.4305 on Thursday, before settling at 1.4293 in late US trade. | The euro hit a high of $1.4305 on Thursday, before settling at 1.4293 in late US trade. |
| It broke the previous record, set on 1 October, when one euro bought $1.4282. | It broke the previous record, set on 1 October, when one euro bought $1.4282. |
| Expectation that the US will lower borrowing costs - while intended to boost the economy - can also make the currency less attractive. | |
| The move can act as a brake on investments in the dollar, as investors seek to place their money where deposits can lead to better returns. | |
| Export implications | Export implications |
| The labour department figures, which showed an extra 28,000 claims for benefit, came a day after data showing the construction of new homes and apartments in the US had plunged to a 14-year low in September. | |
| The dollar has been sliding since the Federal Reserve cut rates from 5.25% to 4.75% in September to help rejuvenate confidence in the world's largest economy. | The dollar has been sliding since the Federal Reserve cut rates from 5.25% to 4.75% in September to help rejuvenate confidence in the world's largest economy. |
| This followed a summer of turmoil in the world's credit markets, sparked by record loan defaults in the US sub-prime mortgage sector. | This followed a summer of turmoil in the world's credit markets, sparked by record loan defaults in the US sub-prime mortgage sector. |
| Since then, a raft of mostly disappointing economic news and soft inflation figures has prompted anticipation of further rate cuts. | Since then, a raft of mostly disappointing economic news and soft inflation figures has prompted anticipation of further rate cuts. |
| While analysts expect the US Federal Reserve to cut interest rates, the European Central Bank is tipped to raise rates within coming months. | |
| There are fears in Europe that a strong euro relative to the dollar could harm exports to the US and China. |