FINANCE

Independent: Dollar plunges to all-time low against euro

The dollar tumbled across the board yesterday, hitting an all-time low against the euro amid fears that Wall Street was betting against the US currency. The euro traded as high as $1.2018 - above $1.20 for the first time - as the dollar slid to new multi-year lows against sterling and the Canadian dollar and a six-month low against the Swiss franc.

With American markets shut for Thanksgiving, traders focused on a string of negative news on the dollar. including yesterday's report in The Independent that the leading financiers George Soros and Warren Buffett had taken "short positions".

Yesterday's fall added to the massive selling of the world's largest currency, which has tumbled by 14 per cent against the euro so far this year. The financial markets are growing increasingly concerned that the US will not be able to attract enough investment to fund its burgeoning current account deficit, which is running at record levels

( Some Wall Street Banks are now warning their clients that as long as the Bush Federal Reserve insists
on keeping interest levels at artificial lows (to give the false impression that the economy is in better shape than it is), the dollar is in serious danger of collapse.)