Dollar drops versus euro, yen

The US dollar was weaker versus the euro and the yen on Friday on a decline in US consumer confidence and on a spike to a new record high of $127.82 per barrel for crude oil prices in New York.

At shortly after noon in New York, the dollar was trading at $1.5588 to the euro and it took ¥103.8950 to buy a dollar.

The euro was helped out by more signals from European Central Bank president Jean-Claude Trichet that Eurozone interest rates will not be falling in the foreseeable future.

The South African rand, in demand for investors interested in risky carry trades, was at R7.4705 to the greenback while it took ¥13.904 to buy a rand.

The Icelandic krona strengthened on pledges of financial help from Denmark, Sweden and Norway after Standard & Poor’s cut the nation’s credit rating last month after its banks had trouble raising money due to the credit crisis.

In early afternoon trade in New York the krona was at kr116.18 to the euro and at kr74.05 to the US dollar.

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