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The US dollar hit a new all-time low against the euro on Monday, but later recovered to close at $1.3802.
This was a slight improvement on Friday evening’s $1.3822. However, it was another shaky day for the US currency as it reached $1.3844 earlier on Monday, the highest in the 13-year history of the European Union currency.
The dollar didn’t fare any better against the British pound, ending the day at $2.0579, having climbed to $2.0603 earlier in the day.
The US currency hit a six-week low against the Japanese yen, rising to 121.33 early in the day before falling back to 120.78, down from Friday’s closing figure of 121.24.
Much of the uncertainty surrounding the US dollar revolves around the ongoing lending crisis in the US and a gloomy outlook on the broader housing market.
In Europe, there is growing concern that the strengthening of the euro against the dollar will have a negative affect on exports. The ECB has moved quickly to play down such fears, but analysts remain skeptical.
While the US dollar failed to show signs of a recovery, US stocks were on the up again as buyout news boosted confidence. The Dow Jones industrial average rose 92.34, or 0.67%, to 13,943.42.
Other indexes were also on the up. The Nasdaq composite index was up 2.98, or 0.11%, to 2,690.58, while Standard & Poor’s 500 index rose 7.46, or 0.49%, to 1,541.56.
13:43
Posted on Jul-22-2007
