Dollar Slides to Record Low; Oil Tops $102

Investors bet on Fed rate cut, driving euro up against US currency
By Jim O'Neill,  Newser User
Posted Feb 27, 2008 6:27 AM CST
A woman walks past currency signs of Yuan, euro and U.S. dollar at a money exchange shop in Hong Kong Thursday, Jan. 31, 2008. The dollar fell against 15 of the 16 most-active currencies.   (Associated Press)
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(Newser) – The dollar declined against most major currencies and fell to its lowest level ever against the euro today as markets anticipated another rate cut from the Fed when it meets March 18, increasing the value of assets outside the US, Bloomberg reports. The dollar’s erosion pushed commodity prices up, with oil topping $102 a barrel for the first time.

Analysts predicted the dollar will continue its slide. “It's crunch time for the dollar,'' said one. The dollar traded lower against 15 of the 16 most-traded currencies, and:

  • Fell to $1.5074 per euro
  • Hit a 23-year low against the New Zealand dollar
  • Fell to 106.35 yen
  • Hit a three-week low against the South African rand as gold prices soared