The dollar hit a new record low against the euro today after Federal Reserve chairman Ben Bernanke painted a gloomy picture of the US economy that fuelled speculation about another US rate cut.
The euro jumped to an historic high of $1.4752 dollars in early European trading, a day after the European Central Bank kept its key interest rate at 4%. The euro later fell back to just under $1.47.
In his testimony to Congress Thursday, Bernanke focused on the risks to US growth and expectations of a significant slowdown in the fourth quarter and into 2008.
US interest rates stand at 4.5% after being cut by three-quarters of a point in two moves since September, making the dollar less attractive as an investment compared with the euro.
