Dollar slips to record low against euro

THE dollar dropped to a record low against the euro in New York after industry reports showed indexes of Chicago manufacturing and US consumer confidence fell this month.

The decline may give the Federal Reserve scope to keep its target interest rate at a four-decade low of 1%, half the rate of the European Central Bank. The Fed said on December 9 it can keep policy accommodative for “a considerable period”.

“People are finding other places in which to invest,” said Tim Mazanec, a currency strategist at Investors Bank & Trust in Boston. “There’s a continued lack of interest in the US dollar.”