Dollar falls against euro

THE dollar had its biggest decline against the euro in two months in New York trading after a government report showed net foreign purchases of US securities in September fell to the lowest in five years.

A drop in the amount of stocks and bonds bought by foreigners may make it difficult for the US to finance the deficit in its current account, the broadest measure of trade and investment. The Treasury Department said foreigners bought a net $4.19 billion in September, down from $49.9 billion in August and the smallest since $1.17 billion in September 1998.

“It’s the hardest evidence yet the US current account deficit has finally become unsustainable and the foreign appetite for US securities has finally fallen short," said Michael Woolfolk, a currency strategist at the Bank of New York, the third-largest New York-based bank.