Dollar reaches record low after US consumer confidence and home prices fall

Tuesday, October 30, 2007

The U.S. Dollar fell to an all time low against the Euro after data from the U.S. heightened concerns regarding an economic recession.

The U.S. currency traded at 1.444 versus the Euro and reached a 26-year low against the British Pound. An index that measures US consumer confidence fell in October to 95,6 points while in August U.S. home prices declined 4,4%, the biggest fall of the past six years. The data bolsters speculation that the Federal Reserve may cut interest rates in the next meeting. The U.S. central bank is set to decide on interest rates on the 31st of October and economists expect a 25 basis point cut to 4,50%