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| Version 2 | Version 3 |
|---|---|
| Dollar continues near record lows | Dollar continues near record lows |
| (about 6 hours later) | |
| The US dollar has remained weak against both the euro and the yen in Monday trading as worries about the strength of the US economy continue. | The US dollar has remained weak against both the euro and the yen in Monday trading as worries about the strength of the US economy continue. |
| The dollar fell to $1.4659 against the euro by late afternoon trade in New York, and dropped to 110.04 yen. | |
| At the start of November, the dollar hit a record low of $1.4752 against the single European currency. | At the start of November, the dollar hit a record low of $1.4752 against the single European currency. |
| The strength of the dollar had been undermined further by weak US economic data released on Friday. | The strength of the dollar had been undermined further by weak US economic data released on Friday. |
| Interest rate cuts | Interest rate cuts |
| As a growing number of US banks reveal their exposure to bad US mortgage debt, data on Friday showed the biggest drop in American industrial production since January. | As a growing number of US banks reveal their exposure to bad US mortgage debt, data on Friday showed the biggest drop in American industrial production since January. |
| As long as housing remains a downside risk, people will think the Fed is biased to cut rates in the near term David Watt, senior currency strategist, RBC Capital Markets | As long as housing remains a downside risk, people will think the Fed is biased to cut rates in the near term David Watt, senior currency strategist, RBC Capital Markets |
| Taken together, analysts say this suggests further cuts in US interest rates. | Taken together, analysts say this suggests further cuts in US interest rates. |
| "There are no fundamental reasons to buy the dollar," said Tsutomu Soma, senior manager of foreign securities at Okasan Securities. | "There are no fundamental reasons to buy the dollar," said Tsutomu Soma, senior manager of foreign securities at Okasan Securities. |
| The US Federal Reserve last cut interest rates in October to 4.5%, in an effort to kick-start the faltering housing and credit markets, as well as making borrowing cheaper to encourage consumer spending in the run-up to the key Christmas shopping period. | The US Federal Reserve last cut interest rates in October to 4.5%, in an effort to kick-start the faltering housing and credit markets, as well as making borrowing cheaper to encourage consumer spending in the run-up to the key Christmas shopping period. |
| Despite signalling that it will adopt a wait-and-see approach to the future direction of interest rates, most economists expect a further cut in rates when Fed officials next meet in December. | Despite signalling that it will adopt a wait-and-see approach to the future direction of interest rates, most economists expect a further cut in rates when Fed officials next meet in December. |
| "Are there inflation fears in the United states? Yes," said David Watt, senior currency strategist at RBC Capital Markets in Toronto. | "Are there inflation fears in the United states? Yes," said David Watt, senior currency strategist at RBC Capital Markets in Toronto. |
| "But as long as housing remains a downside risk, people will think the Fed is biased to cut rates in the near term." |