Tuesday, July 24, 2007

Dollar Declines to Record Low Against Euro on Spreading U.S. Mortgage Woes

(Bloomberg) -- The dollar declined to a record
against the euro and weakened to a 26-year low versus the pound
on speculation the rout in subprime mortgages is spreading,
slowing U.S. growth.

The currency's drop accelerated after Countrywide Financial
Corp., the biggest U.S. mortgage lender, reported a third
straight quarterly earnings decline as more consumers fell
behind on home equity loan payments. The yen gained versus all
but one of the 16 most actively traded currencies as U.S. stocks
fell and traders pared carry trades in which they borrow in the
yen to invest in higher-yielding assets.


Read more at Bloomberg Currencies News

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