Dollar hits record lows against euro

THE dollar hit record lows against the euro for a fourth straight day yesterday as investors warmed to the view that a recovery in the US economy would do little to narrow the wide US current account deficit.

The dollar traded skittishly but mostly lower on the day after a US service sector report undershot forecasts. The Institute for Supply Management non-manufacturing index came in at 60.1 in November, below economists’ consensus forecasts for a reading of 64.3 and down from 64.7 in October.

“In the current environment of US strong economic data (the non-manufacturing report) failed to provide a boost to the dollar,” said Sean Callow, currency strategist at IDEAglobal in New York.