This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7075343.stm

The article has changed 5 times. There is an RSS feed of changes available.

Version 0 Version 1
Dollar falls further against euro Dollar falls further against euro
(30 minutes later)
Encouraging statistics on US employment have failed to stem the steady decline of the US dollar, which has dipped to a new record low against the euro. Encouraging US employment data has failed to stem the falls in the US dollar, which has dipped to a new record low against the euro.
At one point, one euro was worth $1.4525, but a slight pull-back saw the eurozone currency trading at $1.4484 in late afternoon European trade. At one point, the decline saw one euro worth $1.4525, while The dollar also plunged to a new 26-year low against the UK pound at $2.0823.
The dollar sell-off came despite a surprisingly good report on jobs in the US, a key indicator of economic health.The dollar sell-off came despite a surprisingly good report on jobs in the US, a key indicator of economic health.
Analysts said the news was not enough to shift negative dollar sentiment.Analysts said the news was not enough to shift negative dollar sentiment.
The dollar also hovered at 26-year lows against the UK pound at $2.0830. The pound reached its highest level against the dollar since 1981 earlier this week following the Federal Reserve's decision to trim US interest rates on Wednesday. Fed impetus
The Fed's cut in rates from 4.75% to 4.5% is set to make the rate of repayment for US consumer debt and home loans cheaper, but it has meant investors are looking to buy other currencies which will give a higher rate of return. The pound's latest surge against the greenback began at the start of the week in anticipation of the Federal Reserve's decision on US interest rates.
The pound and the euro have benefited as the Bank of England is expected to keep UK interest rates unchanged at 5.75% when policy makers meet next week, and there are indications that the European Central Bank may raise rates in the eurozone beyond 4%. Following the Fed's move to reduce rates from 4.75% to 4.5%, sterling rose to its highest level against the dollar since 1981, when one pound was being traded at $2.4270,
This level was, in turn, surpassed in afternoon European trade on Friday.
The US interest rate cut will make the rate of repayment for consumer debt and home loans cheaper but it also means investors are looking to buy other currencies which will give a higher rate of return.
The pound has benefited from expectations that the Bank of England will keep UK interest rates unchanged at 5.75% when policymakers meet next week.
Meanwhile, indications that the European Central Bank may soon raise rates in the eurozone beyond 4% has supported the euro.