Dollar Drops to New All-Time Low Vs. Euro

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Dollar Drops to New All-Time Low Vs. Euro



By GEIR MOULSON, Associated Press Writer

BERLIN - The U.S. dollar dropped to a new all-time low Tuesday against the euro, which rose to $1.3335 even as new figures showed that U.S. economic growth in the third quarter was stronger than previously thought.

The dollar's persistent slide has been fueled by concern over the U.S. trade and budget deficits, and economists say markets are paying only limited attention to economic data against that background.


The dollar hit its new low against the euro, breaking the previous record of $1.3329 set Friday, shortly after European Central Bank President Jean-Claude Trichet renewed his assertion that the euro's rapid rise against the U.S. currency is "unwelcome." The dollar also slipped against the Japanese yen Tuesday, falling to 102.54 yen from 102.88 yen on Monday.


Because the euro's rise tends to make European products more expensive, European leaders have voiced fears that it might hurt the continent's export-driven economic recovery.


The weak dollar also makes life tougher for Americans living abroad, and the U.S. military announced this week that troops stationed in Europe would receive a significant cost of living increase to help provide some relief.

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