Tuesday, July 17, 2007

Dollar Slumps to Record Low Against Euro on Bear Stearns Subprime Losses

(Bloomberg) -- The dollar dropped to a record low
against the euro after Bear Stearns Cos. reported hedge fund
losses, fueling speculation investors will spurn U.S. assets as
the economy slows.

The currency also fell against the yen as investors scaled
back carry trades, where they buy higher-yielding securities with
money borrowed in Japan. Federal Reserve Chairman Ben S. Bernanke
may be asked about financial industry losses caused by mortgage
defaults when he testifies before Congress today.


Read more at Bloomberg Currencies News

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