Euro gains as dollar slumps

FOR a third day in a row the dollar fell to new record lows as continuing worries about recession in the US saw investors traded in the greenback for the euro and the Swiss Franc.

By late afternoon the dollar was sitting at a new low of €1.5185 having been down as low as €1.5195.

Currency experts warned the dollar will weaken further as fears mount the US is heading for a long recession. The dollar’s decline has been spurred by rising expectations that the US Federal Reserve will be forced to cut interest rates further in an effort to keep the economy from going under, analysts said.