Dollar Slides To Fresh Record Lows Versus Yen
The dollar dropped to a new record low against the yen and hit its lowest in more than two months versus the sterling amid growing concerns that U.S. will suffer a double-dip recession.
Analysts and monetary policy makers have downwardly adjusted their U.S. growth forecasts, and with global stock reaching bear market territory, safe havens like the yen and gold have been bid up to record highs.
JPMorgan predicts that U.S. gross domestic product will grow 1 percent in the fourth quarter rather than the 2.5 percent previously forecast and 0.5 percent in the first quarter of 2012 instead of 1.5 percent.
The dollar dropped to Y75.93 to its lowest ever versus the yen, and was stuck at Y76.40 at last check.
At the same time, the dollar slipped to $1.66 versus sterling for the first time since May 2. Early losses took the dollar to $1.44 versus the euro, with the pair unable to sustain any direction for the past few months.
On the other hand, the dollar briefly rose above parity versus its Canadian counterpart, helped by falling crude oil prices.
Canadian consumer prices rose 2.7 percent in the 12 months to July, amid higher prices for gasoline and food. Inflation slowed from the previous two months.
The dollar was stable near CHF 0.7870 versus the Swiss franc. The Federal Reserve provided $200 million of liquidity to the Swiss National Bank on Thursday, but UBS and Credit Suisse denied tapping the funds.
In economic news from the euro zone, German producer price inflation accelerated in July after easing to a six-month low in June, data from the Federal Statistical Office showed Friday.
Producer prices increased 5.8 percent year-on-year in July, while economists expected a 5.3 percent rise.
