Record Low: Euro hits $1.40

Dollar breaks important threshold, but fall isn't over yet
By Jason Farago,  Newser Staff
Posted Sep 20, 2007 7:07 AM CDT
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)
camera-icon View 3 more images

(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.