Dollar declines for fifth day
The dollar has continued its decline against the euro on concerns that slowing inflation in the US may prompt investors to look for assets in countries with higher interest rates.
For a fifth day the dollar continued its slide, falling to $1.3592 per euro this morning. It dropped to 118.86 yen while the pound rose to $2.0088, Bloomberg reports.
Howard Archer, chief economist at Global Insight, told the International Business Times that the pound could hold its place above the $2 mark for an "extended period".
America's currency fell after a government report highlighted easing consumer price gains in comparison with countries such as the UK, New Zealand and Germany where bank rate increases have been forecast.
Kazuhiro Kaneko, a currency trading manager at Mizuho Trust & Banking, told the news source: "Inflation worries are diminishing. This is bringing about a weaker dollar."
Meanwhile, in New Zealand, the dollar rose to its highest point since 1990 yesterday, reaching 88.97 yen, while Australia's dollar achieved 100 yen.
In the UK, the Bank of England is apparently set to increase interest rates as inflation spirals out of control, David Brown, chief European economist at Bear Stearns told MarketWatch.