Friday, November 2, 2007

Dollar Falls to Record Low Against Euro as Credit Concern Rises

By Min Zeng and Bo Nielsen

Nov. 2 (Bloomberg) -- The dollar fell to a record against the euro and declined against most major currencies on concern deepening credit-market losses will prompt the Federal Reserve to reduce interest rates again this year.

The dollar dropped to the lowest against a basket of currencies as Deutsche Bank AG said Merrill Lynch & Co.'s writedowns on collateralized debt obligations may reach $10 billion. Traders raised bets that the Fed will reduce its target rate for a third time on Dec. 11. The U.S. currency rose versus the yen after a report showed U.S. job growth accelerated. Read more.

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