LONDON, 25 November 2004 — The dollar trawled record depths against the euro yesterday, hit by signs that central banks in Russia and elsewhere could step up sales of the ailing US currency to buy euros. The single European currency soared to a new record against the dollar, reaching $1.3178 in late European trading.
It was the third record high of the day, and the second straight day of record highs for the euro, which has been boosted by concerns about the US budget and current account deficits.
The euro then eased back, changing hands at 1.3174 dollars, against 1.3084 late on Tuesday in New York. The dollar fell to 102.89 yen from 103.30 on Tuesday.
The dollar sell-off has gathered pace over the week as concerns over the US’s twin deficits combined with talk the Russian Central Bank is reviewing the structure of its currency reserves away from the US currency.
The euro was changing hands at $1.3174 against $1.3084 late on Tuesday in New York, 135.52 yen (135.16), 0.7001 pounds (0.7000) and 1.5105 Swiss francs (1.5152). The dollar stood at 102.89 yen (103.30) and 1.1463 Swiss francs (1.1582).