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July 6, 2008 8:39:16 AM CDT

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Record Low: Euro hits $1.40

Posted Sep 20, 07 7:07 AM CDT in Business    Editor's Choice

(Newser) – The dollar dropped to a record low against the euro in early Asian trading on Thursday, breaking the $1.40 barrier for the first time since the establishment of the common currency. The Fed's half-point cut in interest rates led investors to drop the greenback, and chief Ben Bernanke's upcoming testimony before Congress might spell further trouble.

Analysts tell Bloomberg that the Bernanke-led reserve is "not a dollar-friendly Fed," preferring to focus on monetary policy rather than the international strength of the currency. And further falls are still predicted, with the possibility of a euro being worth $1.45 by the year's end. The $1.40 barrier has been viewed by analysts as a key turning point in solidifying the euro's position in currency markets, the Wall Street Journal notes.

Source Bloomberg

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Traders in the euro dollar options trading pit offer contracts for sale at the Chicago Mercantile Exchange Monday, July 9, 2007, in Chicago. Chicago Board of Trade shareholders meet Monday and are expected...   (Associated Press)
Euro coins are seen next to U.S. Dollar bills in Frankfurt, central Germany, Thursday, Sept. 20, 2007, after the euro reached an all time high of more than US$1,40. (AP Photo/Michael Probst)   (Associated Press)
European Central Bank President Jean Claude Trichet adjusts his glasses while speaking during a media conference after a meeting of EU finance ministers in Porto, Portugal, Friday Sept. 14, 2007. Euro...   (Associated Press)
A money changer employee changes Euro and US Dollars on an exchange kiosk, in downtown Milan, Italy, July 5, 2005. The euro soared to a new high against the U.S. dollar on Tuesday July 10, 2007, reaching...   (Associated Press)
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Federal Reserve  • Ben Bernanke  • US dollar  • euro  • Asian markets  • currency


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