Sunday, April 22, 2007

Dollar May Fall to More Than Two-Year Low Against Euro on Tighter Rate Gap

(Bloomberg) -- The dollar may fall to the lowest in over two years against the euro on concerns the U.S. interest rate advantage over Europe will decline.

The dollar has fallen more than 10 percent versus the euro over the past year as the spread between U.S. and European three- month rates reached its tightest gap in almost two years. Signs of as U.S. slowdown have fueled bets the Federal Reserve will cut interest rates as the European Central Bank raises borrowing costs.


Read more at Bloomberg Currencies News

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