US dollar weakens

The US dollar was weaker versus the euro and all other major currencies on Monday on continuing speculation that interest rates in the United States will drop again soon and ahead of a report from the Commerce Department that is projected to show that December retail sales were steady.

The greenback was close to a record low against the euro at $1.4915 to the euro; it later traded at $1.4878 in early afternoon trade in New York.

At the same time, the US dollar traded at ¥108.0950 to the dollar.

Meanwhile, the euro moved little in relation to the yen at ¥160.8236 to the euro and hit a new high at 76.08p to the pound before trading at 76.01p to the euro at just before 1 p.m. New York time.

The euro gained against 12 of 16 major currencies during the day, but it weakened versus the Swiss franc to SFr1.6250 to the euro.

At the same time, the Swiss franc hit a record high in relation to the US currency and traded at SFr1.0922 to the dollar in early afternoon trade in New York.

The pound was weaker against all but two major currencies on sentiment that UK interest rates will be around 4.75 percent by September, trading at $1.9573 to the pound and at ¥211.5797 to the pound in New York.

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