Dollar slumps to three-year low against yen

0 Comments | AFP, March, 2008

TOKYO (AFP) — The ailing dollar slumped to a fresh three-year low against the yen Monday and approached its all-time nadir versus the euro amid fears the US economy may already be in recession, dealers said.

They said traders were betting on further interest rate cuts by the US Federal Reserve to try to contain the fallout from the US housing slump and credit crunch, which is likely to keep the greenback under pressure.

The dollar was bid as low as 102.90 yen in early Tokyo trade, the weakest level since January 2005. It later recovered to 103.20 yen by late afternoon here, down from 103.73 on Friday in New York.

The euro rose to 1.5216 dollars from 1.5182, close to Friday's all-time high of 1.5239. The euro slipped to 157.00 yen from 157.49.

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