Dollar May Extend Drop Versus Euro - Early Asian Session
The dollar may extend its biggest two- day decline against the euro since March before a government report likely to show U.S. house prices fell in the first quarter, indicating the economy will weaken further.
The euro surged yesterday as the price of crude oil increased to more than $134 a barrel and German business confidence unexpectedly rose, bolstering speculation the European Central Bank won’t lower interest rates.
The Federal Reserve cut 2008 growth forecasts in the minutes of its last meeting.
The dollar traded at $1.5791 per euro early this morning in Tokyo, after dropping 1 percent yesterday.
The U.S. currency was at 103.03 yen after falling 0.6 percent. The euro advanced to 162.73 yen after rising 0.3 percent yesterday.
fvarga
