This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7300231.stm
The article has changed 5 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Dollar slides to fresh euro low | Dollar slides to fresh euro low |
(19 minutes later) | |
The dollar has fallen to a new record low against the euro, amid continued fears over the state of the US economy and worsening credit conditions. | |
The US Federal Reserve has cut a key lending rate, but the move failed to buoy investor confidence. | |
At one stage on Monday morning it took $1.5904 to buy a euro. | At one stage on Monday morning it took $1.5904 to buy a euro. |
With giant investment bank Bear Stearns needing emergency rescue, investors are concerned other banks may follow suit, as the credit crunch claims casualties. | |
'Alarming' | |
JP Morgan Chase is to acquire Bear Stearns, Wall Street's fifth-largest investment bank, for $2 a share - a fraction of its previous value. | |
"This is not the kind of help you want to see. Bear Stearns getting sold at $2 is alarming," said Peter Boockvar, equity strategist at Miller Tabak in New York. | |
"When you see the Fed relying on tools that haven't been used since the Depression, it's alarming," he said. | |
On Sunday, the US Central Bank lowered the discount rate - the rate given to financial institutions - to 3.25% from 3.5%. | |
As the greenback continues to weaken, investors are opting to place their money in commodities, contributing to the sharp rise in oil prices. | As the greenback continues to weaken, investors are opting to place their money in commodities, contributing to the sharp rise in oil prices. |
Sweet crude oil climbed to a new high approaching $112 a barrel. | Sweet crude oil climbed to a new high approaching $112 a barrel. |
"Gold will be the main beneficiary [of the falling dollar] as a hedge against global risk," said Australia & New Zealand Bank senior commodities analyst Mark Pervan. | |
The dollar also weakened to 95.72 yen, its lowest since August 1995. |