LONDON, 15 November 2007 — The dollar fell close to a new record low against the euro here yesterday as a weak US retail sales figure bolstered speculation of another cut in US interest rates by the Federal Reserve.
The single European currency was at 1.4672 dollars in late-day trade after 1.4600 late Tuesday in New York. The euro at one point rose to 1.4725 dollars, just off its record 1.4752, set on November 9.
The dollar was meanwhile trading at 111.41 yen against 110.90 on Tuesday.
US retail sales, a vital piston of economic growth, showed a lackluster gain of 0.2 percent in October as US consumers checked their spending, a government report showed yesterday.
The euro got a boost yesterday from robust third quarter euro zone growth figures, which showed a 0.7 percent quarterly gain for a 2.6 percent yearly rate.
In European trade yesterday, the euro changed hands at 1.4672 dollars, against 1.4600 dollars late on Tuesday, 163.50 yen (161.95), 0.7128 pounds (0.7050) and 1.6469 Swiss francs (1.6462). The dollar stood at 111.41 yen (110.90) and 1.1222 Swiss francs (1.1273).
In London, the price of gold rose to $813.50 per ounce from $804.25 late on Tuesday.
Meanwhile, European stock exchanges posted healthy gains yesterday, powered by strong early trading on Wall Street where investors took heart from reassuring economic data.
Asian markets closed with clear gains earlier in the day.
The London FTSE 100 index added 1.10 percent to close at 6,432.10 while in Paris the CAC 40 rose 1.35 percent to finish at 5,613.60. In Frankfurt the DAX gained 0.07 percent to end the session at 7,783.11. The Euro Stoxx 50 index of leading euro zone issues climbed 0.61 percent to finish at 4,338.28.
In New York, the Dow Jones Industrial Average was down 7.07 points, or 0.05 percent, at 13,300.02. The Standard & Poor’s 500 Index was up 1.35 points, or 0.09 percent, at 1,482.40. The NASDAQ Composite Index was down 8.75 points, or 0.33 percent, at 2,664.90.