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U.S. dollar plunges against Asian currencies
The U.S. dollar tumbled to its lowest rate in years against key Asian currencies Thursday after a top U.S. official indicated the government wouldn't intervene to halt the American currency's recent slide worldwide. The dollar fell to a four-and-a-half-year low against the Japanese yen, and a seven-year low against the South Korean won. The trend continued as European markets opened, and the dollar fell to a new record low against the euro. The euro surged to US$1.3074, breaking the record set on Wednesday, as concerns about high oil prices and the U.S. trade and budget deficits continued to push the dollar lower. Analysts attributed Thursday's plunge to comments by U.S. Treasury Secretary John Snow in London on Wednesday, that "no one has ever devalued their way to prosperity" but the "only way to get prosperity is to follow the marketplace." In Tokyo, the dollar fell late Thursday to 103.76 yen, its lowest level since April 2000, down 1.30 yen from late Wednesday. On Thursday, several Japanese financial officials expressed concern about the dollar's moves, and the top government spokesman said Japan was ready to intervene as it has done in the past to prop up the dollar. Some Asian officials have been worried the United States will start relying on a weak dollar to fight the ballooning American trade and budget deficits. Posted by: Mark Espinola 2004-11-18 |
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