The dollar slid against the euro on Monday after the head of Iraq's interim Governing Council was assassinated and a U.S. Treasury Department report showed international investors bought fewer American assets in March.
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Izzadine Saleem was killed in a bomb attack on his convoy in Baghdad as the United States prepares to hand over power to an interim Iraqi government on June 30. The dollar's decline began before Saleem's death, when bombs damaged four Turkish branches of British-owned bank HSBC.
The euro was at $1.2008 in afternoon trading, up sharply from $1.1884 late Friday in New York. The dollar rose to ¥114.365 from ¥114.235 and fell to 1.2787 Swiss francs from 1.2959 francs. The pound rose to $1.7686 from $1.7600.
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The euro has fallen 7 percent against the dollar since the European currency reached a record of $1.2930 on Feb. 18
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Today's losses aside, the dollar has gained 5.2 percent against the euro since reaching a record low of $1.2930 on Feb. 18 amid forecasts that the U.S. Federal Reserve would raise its benchmark interest rate from 1 percent in June, improving yields on U.S. debt and other securities.
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The situation in Iraq "is starting to become more pervasive," and in part "could trigger a further temporary strengthening of the euro" this week, said John Rothfield, senior currency strategist in San Francisco at Bank of America.
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The dollar also fell after the Treasury said foreigners bought a net $78.6 billion of financial stocks, bonds and government securities, the smallest increase since December. The U.S. counts on foreign investment to help finance its budget shortfall, which the Bush administration forecasts will reach a record $521 billion this fiscal year.
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Before the explosions in Iraq and Turkey, the U.S. dollar had risen as high as ¥114.65 after Japanese stocks extended a three-week decline and opposition politicians called for Prime Minister Junichiro Koizumi to resign.
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Japan's benchmark Nikkei 225 Stock Average has lost 13 percent since April 26 and fell below 10,500 for the first time since February, when it rose to its highest since August 2001.
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"It's harder to be upbeat about the Japanese economy," said Robert Rennie, currency strategist in Sydney at Westpac Banking. "There's the pension scandal and the concerns over stocks."
.
"We are seeing an unwinding of long dollar positions and a flight into safer-haven currencies," said Shahab Jalinoos, senior currency strategist at ABN Amro. (Bloomberg, Reuters) NEW YORK
.
The dollar slid against the euro on Monday after the head of Iraq's interim Governing Council was assassinated and a U.S. Treasury Department report showed international investors bought fewer American assets in March.
.
Izzadine Saleem was killed in a bomb attack on his convoy in Baghdad as the United States prepares to hand over power to an interim Iraqi government on June 30. The dollar's decline began before Saleem's death, when bombs damaged four Turkish branches of British-owned bank HSBC.
.
The euro was at $1.2008 in afternoon trading, up sharply from $1.1884 late Friday in New York. The dollar rose to ¥114.365 from ¥114.235 and fell to 1.2787 Swiss francs from 1.2959 francs. The pound rose to $1.7686 from $1.7600.
.
The euro has fallen 7 percent against the dollar since the European currency reached a record of $1.2930 on Feb. 18
.
Today's losses aside, the dollar has gained 5.2 percent against the euro since reaching a record low of $1.2930 on Feb. 18 amid forecasts that the U.S. Federal Reserve would raise its benchmark interest rate from 1 percent in June, improving yields on U.S. debt and other securities.
.
The situation in Iraq "is starting to become more pervasive," and in part "could trigger a further temporary strengthening of the euro" this week, said John Rothfield, senior currency strategist in San Francisco at Bank of America.
.
The dollar also fell after the Treasury said foreigners bought a net $78.6 billion of financial stocks, bonds and government securities, the smallest increase since December. The U.S. counts on foreign investment to help finance its budget shortfall, which the Bush administration forecasts will reach a record $521 billion this fiscal year.
.
Before the explosions in Iraq and Turkey, the U.S. dollar had risen as high as ¥114.65 after Japanese stocks extended a three-week decline and opposition politicians called for Prime Minister Junichiro Koizumi to resign.
.
Japan's benchmark Nikkei 225 Stock Average has lost 13 percent since April 26 and fell below 10,500 for the first time since February, when it rose to its highest since August 2001.
.
"It's harder to be upbeat about the Japanese economy," said Robert Rennie, currency strategist in Sydney at Westpac Banking. "There's the pension scandal and the concerns over stocks."
.
"We are seeing an unwinding of long dollar positions and a flight into safer-haven currencies," said Shahab Jalinoos, senior currency strategist at ABN Amro. (Bloomberg, Reuters)
.
Izzadine Saleem was killed in a bomb attack on his convoy in Baghdad as the United States prepares to hand over power to an interim Iraqi government on June 30. The dollar's decline began before Saleem's death, when bombs damaged four Turkish branches of British-owned bank HSBC.
The euro was at $1.2008 in afternoon trading, up sharply from $1.1884 late Friday in New York. The dollar rose to ¥114.365 from ¥114.235 and fell to 1.2787 Swiss francs from 1.2959 francs. The pound rose to $1.7686 from $1.7600.
.
The euro has fallen 7 percent against the dollar since the European currency reached a record of $1.2930 on Feb. 18
.
Today's losses aside, the dollar has gained 5.2 percent against the euro since reaching a record low of $1.2930 on Feb. 18 amid forecasts that the U.S. Federal Reserve would raise its benchmark interest rate from 1 percent in June, improving yields on U.S. debt and other securities.
.
The situation in Iraq "is starting to become more pervasive," and in part "could trigger a further temporary strengthening of the euro" this week, said John Rothfield, senior currency strategist in San Francisco at Bank of America.
.
The dollar also fell after the Treasury said foreigners bought a net $78.6 billion of financial stocks, bonds and government securities, the smallest increase since December. The U.S. counts on foreign investment to help finance its budget shortfall, which the Bush administration forecasts will reach a record $521 billion this fiscal year.
.
Before the explosions in Iraq and Turkey, the U.S. dollar had risen as high as ¥114.65 after Japanese stocks extended a three-week decline and opposition politicians called for Prime Minister Junichiro Koizumi to resign.
.
Japan's benchmark Nikkei 225 Stock Average has lost 13 percent since April 26 and fell below 10,500 for the first time since February, when it rose to its highest since August 2001.
.
"It's harder to be upbeat about the Japanese economy," said Robert Rennie, currency strategist in Sydney at Westpac Banking. "There's the pension scandal and the concerns over stocks."
.
"We are seeing an unwinding of long dollar positions and a flight into safer-haven currencies," said Shahab Jalinoos, senior currency strategist at ABN Amro. (Bloomberg, Reuters) NEW YORK
.
The dollar slid against the euro on Monday after the head of Iraq's interim Governing Council was assassinated and a U.S. Treasury Department report showed international investors bought fewer American assets in March.
.
Izzadine Saleem was killed in a bomb attack on his convoy in Baghdad as the United States prepares to hand over power to an interim Iraqi government on June 30. The dollar's decline began before Saleem's death, when bombs damaged four Turkish branches of British-owned bank HSBC.
.
The euro was at $1.2008 in afternoon trading, up sharply from $1.1884 late Friday in New York. The dollar rose to ¥114.365 from ¥114.235 and fell to 1.2787 Swiss francs from 1.2959 francs. The pound rose to $1.7686 from $1.7600.
.
The euro has fallen 7 percent against the dollar since the European currency reached a record of $1.2930 on Feb. 18
.
Today's losses aside, the dollar has gained 5.2 percent against the euro since reaching a record low of $1.2930 on Feb. 18 amid forecasts that the U.S. Federal Reserve would raise its benchmark interest rate from 1 percent in June, improving yields on U.S. debt and other securities.
.
The situation in Iraq "is starting to become more pervasive," and in part "could trigger a further temporary strengthening of the euro" this week, said John Rothfield, senior currency strategist in San Francisco at Bank of America.
.
The dollar also fell after the Treasury said foreigners bought a net $78.6 billion of financial stocks, bonds and government securities, the smallest increase since December. The U.S. counts on foreign investment to help finance its budget shortfall, which the Bush administration forecasts will reach a record $521 billion this fiscal year.
.
Before the explosions in Iraq and Turkey, the U.S. dollar had risen as high as ¥114.65 after Japanese stocks extended a three-week decline and opposition politicians called for Prime Minister Junichiro Koizumi to resign.
.
Japan's benchmark Nikkei 225 Stock Average has lost 13 percent since April 26 and fell below 10,500 for the first time since February, when it rose to its highest since August 2001.
.
"It's harder to be upbeat about the Japanese economy," said Robert Rennie, currency strategist in Sydney at Westpac Banking. "There's the pension scandal and the concerns over stocks."
.
"We are seeing an unwinding of long dollar positions and a flight into safer-haven currencies," said Shahab Jalinoos, senior currency strategist at ABN Amro. (Bloomberg, Reuters)
