Monday, July 2, 2007

Dollar Drops to One-Month Low Against Euro on Outlook for Interest Rates

(Bloomberg) -- The dollar fell to the lowest level in
more than a month against the euro and dropped against the yen on
speculation the Federal Reserve will keep borrowing costs
unchanged while other central banks extend their increases.

Investors also sold the U.S. currency amid concern losses
from the subprime mortgage sector may weigh on the broader
economy, dimming the allure of dollar-denominated assets. Reports
this week are forecast to show U.S. job growth slowed last month
while a gauge of the service sector declined.


Read more at Bloomberg Currencies News

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