Dollar weakens against euro

THE dollar declined to its lowest in five weeks against the euro yesterday after some US companies cut profit forecasts, prompting traders to speculate international investors will reduce their purchases of US assets.

Declining investment by Europeans and Japanese in US stocks and corporate bonds would sink the dollar because the country needs $1.5 billion in foreign capital a day to offset its current account deficit, according to analysts.

"It's a weaker dollar story across the board," said Kurt Magnus, head of foreign exchange sales for Europe at Westpac Banking Corp., which had the second-most accurate euro-yen forecast for the first quarter in a Bloomberg News survey.