06-03-2008
Value of dollar continues fall
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 US dollar has continued to weaken.
According to today's reports (March 6th), the US dollar has continued its fall against the euro to a level not seen since 1999, with one euro now costing $1.5345.
The decline of the dollar's strength has been blamed upon current interest rate levels in the US, while - according to Bloomberg - the value of the euro has been buoyed by expectations that the European Central Bank will leave current interest rate levels unchanged.
"The yield story is negative for the dollar. The US interest rate disadvantage over Europe is widening and its advantage is diminishing over Japan" said Tomoko Fujii, head of Japan economics and strategy at Bank of America in Tokyo.
Tokichi Ito, deputy general manager of foreign exchange in Tokyo at Trust & Custody Services Bank, added in a report by Bloomberg: "The biggest focus of today is to what extent Trichet tries to talk down the euro and prop up the dollar."
However, against the value of sterling, the dollar remained largely unchanged, with £1 costing $1.9920.