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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

(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.

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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Record Low: Euro hits $1.40

Dollar breaks important threshold, but fall isn't over yet

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Dollar Makes Comeback as Banks Predict Intervention

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Investors Might Reap Rewards of Dollar's Slide

Currency's record lows against euro cause "to cheer," analyst says

Dollar Nears 3-Year Low

Set for biggest weekly plunge since January

Fed Fires Back at China, Germany

Soaring unemployment an 'unacceptable outcome,' says Ben Bernanke

China: Feeble Dollar Is Hurting Our Economy

'Out of control' printing of dollars is triggering inflation, says minister

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Record Low: Euro hits $1.40

Dollar breaks important threshold, but fall isn't over yet

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OTHER STORIES ON OUR RADAR

Ben Bernanke • currency • Federal Reserve • euro • Asian markets • US dollar

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Dollar Makes Comeback as Banks Predict Intervention

Greenback back above 100 yen, gains on euro

Investors Might Reap Rewards of Dollar's Slide

Currency's record lows against euro cause "to cheer," analyst says

Dollar Nears 3-Year Low

Set for biggest weekly plunge since January

Fed Fires Back at China, Germany

Soaring unemployment an 'unacceptable outcome,' says Ben Bernanke

China: Feeble Dollar Is Hurting Our Economy

'Out of control' printing of dollars is triggering inflation, says minister

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?