Dollar Falls to Record Low Against Euro on Housing Woes, Subprime Concern

(Bloomberg) -- The dollar fell to a record against
the euro and dropped the most since March versus the yen on
speculation the housing market's slump will worsen.

The U.S. currency also sank against the Swiss franc, British
pound and Danish krone after Standard & Poor's warned it may cut
ratings on $12 billion of bonds backed by subprime mortgages,
diminishing the appeal of dollar-denominated assets. Futures
contracts show traders forecast the Federal Reserve will keep
borrowing costs on hold through year-end.


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Yield search takes yen to record low vs euro

(Reuters) - The New Zealand dollar stayed firm despite suspected fresh central bank intervention. The bank entered the market a week ago to knock the kiwi off 22-year peaks versus the U.S. dollar.




Risk appetite was supported by gains in global equities. In currency markets this boosted demand for carry trade investments funded by borrowing in low-yielders like the yen and the Swiss franc. The franc also hit a record low versus the euro.


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South African Rand Gains; Central Bank Lifts Rates for First Time in 2007

(Bloomberg) -- The South African rand rose against
the dollar, snapping a three-day losing run, after the country's
central bank lifted interest rates for the first time this year.

The rand rebounded from near a two-month low as policy
makers lifted the benchmark lending rate a half-point to 9.5
percent. The increase will make rand-denominated assets more
attractive for carry trade investors, who fund high-yielding
purchases by borrowing in low interest-rate currencies like the
Japanese yen or Swiss franc.


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Swiss Franc Holds Near Two-Week High Versus Dollar as GDP Growth Quickens

(Bloomberg) -- The Swiss franc traded near its
highest in two weeks against the dollar after a report showed
first-quarter growth in the Swiss economy quickened faster than
estimated.

Switzerland's currency yesterday touched the highest versus
the euro in more than two weeks as falling global stocks caused
investors to dump riskier assets. A report today showed gross
domestic product in the Alpine economy rose 0.8 percent from the
fourth quarter. Economists surveyed by Bloomberg News had
expected 0.6 percent growth.


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