28-02-2008
US dollar reaches new low
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The US dollar has hit a new low against the European single currency.
Sinking during trading yesterday (February 27th), the slide of the dollar comes as Ben Bernanke of the US Federal Reserve indicated that the US may opt to again reduce interest rates in March.
At present, Mr Bernanke is the chairman of the US Federal Reserve's board of governors. However, he stressed that recent interest rate reductions have, so far, only had a limited impact. "It has been very difficult to lower long-term mortgage rates through Fed action. What we have done has been mostly just to offset the tightening of credit," said Mr Bernanke. "[Consumer spending in the US] appears to have slowed significantly [and] the business sector has also displayed signs of being affected by the difficulties in the housing and credit markets."
During trading yesterday, the euro breached a threshold of $1.51 (£0.76). In the US, interest rates are currently at three per cent.