Dollar slides to record low against euro

Neil Dennis
Financial Times
Monday October 22, 2007

The dollar hit a record low against the euro on Monday after the weekend G7 summit failed to explicitly address dollar weakness.

In their post-meeting communique G7 finance ministers urged China to let its renminbi appreciate more rapidly, but did not mention dollar weakness, which provided the catalyst for traders to dump the currency.

”The communique did not make any references to the levels of the dollar, euro or yen,” said Sue Trinh at RBC Capital Markets. She added: ”This is, in effect, a green light to sell the dollar.”

After hitting a record $1.4348 against the euro, the dollar later clawed back to trade up 0.2 per cent on the session at $1.4280. Sterling climbed as high as $2.0537 against the dollar.

Japan’s yen hit a six week high of Y113.27 against the dollar, helped by rising aversion to risk after tumbling US equity markets drove the Nikkei 225 more than 2 per cent lower.

Full article here.