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Reuters
TOKYO (Reuters) - The dollar retested record lows against the euro
on Monday as traders continued to shun the U.S. currency on concerns about
bloated deficits in the United States.
The dollar slumped to $1.2973 per euro in early Tokyo trading, revisiting a record low touched in New York on Friday despite data showing a surprising increase in the number of new U.S. jobs created in October. Many analysts painted a dim outlook for the dollar. "There's going to be more dollar-selling in the short term," said Osama Takashima, chief forex analyst at Bank of Tokyo-Mitsubishi. By 19:27 h. EST, the U.S. currency was at $1.2955 per euro, near late New York levels. Against the Japanese currency, it fetched 105.64 yen, near New York levels, after marking the day's low of 105.36 yen in early trade. The dollar bought 1.1785 Swiss francs, within sight of eight-year lows hit on Friday. The market has been awash with concerns about the U.S. twin deficits, which have been a key driver of dollar weakness. The U.S. budget deficit is about $427 billion, or 3.7 percent of gross domestic product, while the current account -- the broadest trade measure since it adds investment flows -- hit a record $166.18 billion shortfall in the second quarter. |
