Dollar Tumbles to Three-Year Low against Yen before U.S. Payrolls (Bloomberg) (07-03-2008)

March 7 (Bloomberg) -- As the dollar continues to tumble it reached the weakest in three years against the yen and traded near a record low versus the euro on speculation the U.S. jobless rate rose and the Federal Reserve will lower its benchmark rate by 75 basis points.

Now in its fourth weekly decline against the euro, the currency fell as futures showed traders see a 98 percent chance the Fed will cut its key rate to 2.25 percent on March 18. Fed Bank of St. Louis President William Poole said yesterday the pain of mortgage-market losses is “not over yet.”

The dollar fell to $1.5430 per euro, the lowest since the common European currency's debut in 1999, before trading at $1.5390 at 9:10 a.m. in London. The U.S. currency dropped to 102.04 yen, the lowest since January 2005; from 102.67 after Bank of Japan Governor Toshihiko Fukui told reporters that keeping rates on hold is the best policy for now.

The U.S. Dollar Index traded on ICE Futures in New York, which compares the currency to those of six trading partners, declined for a ninth straight day to a record low of 72.698.

Source: Bloomberg