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Euro Hits All-Time High Against Dollar
Real estate news By DW staff
12.09.2007
Europe's common currency on Wednesday, Sept. 12, climbed to a new all-time high of $1.3878 amid speculation that the US Federal Reserve is getting ready to cut interest rates. According to analysts, the faltering US economy and increasing talk about a possible recession boosted the euro's value against the dollar in European trading early Wednesday.
The euro had reached a previous record high of $1.3852 in July. The dollar has been under pressure since the US Labor Department released surprisingly low August job data on Friday, Sept. 7, AP news service reported. The announcement led to more speculation that the Federal Reserve would announce an interest rate cut at the next meeting on Sept. 18. Interest rates are currently set at 5.25 percent. A cut would be the first one in four years. Federal Reserve Chairman Ben Bernanke did not address the issue during a speech in Berlin on Tuesday.
The euro is currently used by 13 EU nations: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain and Slovenia. Cyprus and Malta are expected to follow in January 2008. The microstates of Andorra, Monaco, San Marino and Vatican City also use the currency and Montenegro and Kosovo have unilaterally adopted it.
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