Dollar touches record lows against euro
Increasing expectation that the Federal Reserve could vote for another interest rate cut next month is seeing the dollar remain near record lows against the European currency.
AFP reports that last night in New York the euro stood at 1.4125 dollars after touching record highs at the start of trading in Asia.
Financial data on home sales, employment and GDP out today is expected to strengthen expectations of another rate cut, according to Reuters.
Kathy Lien, Forex Capital Markets chief currency strategist, told AFP investors are anticipating another 0.5 per cent rate cut by the Fed between now and the end of the year.
The new-home sales and final second-quarter GDP data "will go a long way in confirming or denying that", she added.
Meanwhile, an unnamed senior trader from a brokerage in Japan told Reuters the US currency "is still on a downward trend".
"But it is also true that investors are wary of the euro being overbought against the dollar," the source added.