17-03-2008
Slide on dollar continues
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The value of the dollar against the euro continued its decline during trading today (March 17th).
According to reports, the currency's devaluation against the euro is continuing on the back of sustained concerns over the health of the US economy and a deterioration in current conditions on credit.
During morning trades, the dollar temporarily declined to a rate of $1.5904 per euro.
"As long as the Fed stays on its own trying to calm money markets the dollar will weaken and work as a catalyst to spread weakness around the globe," said Hans Redeker, a representative from BNP Paribas, in a report by the Financial Times.
"The longer other central banks stand aside, the bigger the risk that dollar depreciation expectations become deeply rooted."
In related news, the US Federal Reserve yesterday opted to reduce the interbank interest rate by 0.25 per cent to 3.25 per cent.
Established in 2000, BNP Paribas is a major European bank with headquarters in France.