Bush: US economy not headed for recession

The US dollar was weaker Thursday, hitting new lows versus the euro and the Swiss franc and nearing a two-and-a-half-year low versus the Japanese yen, while analysts were expecting more interest rate cuts after new comments from Federal Reserve chairman Ben Bernanke even as President George W. Bush told a press conference that the US economy is not headed for recession.

The dollar touched $1.5196 to the euro in morning trade, a new record low, before recovering slightly to $1.5182 to the shared currency and traded at $1.9884 to the pound while a dollar was worth ¥105.5600 and SFr1.0524, also a record low.

The South African rand was also weaker as demand for the currency weakened with investors backing away from carry trades.

The yen traded at ¥13.971 to the rand and while a Swiss franc bought R7.1905 and the rand traded at R7.5605 to the dollar.

Meanwhile, the Canadian dollar advanced as oil and gold prices hovered near record highs, with a loonie being worth $1.0291 just before noon in New York.

Story link: Bush: US economy not headed for recession