Dollar loses ground on growing US slowdown concerns (Reuters)  (21-02-2008)

LONDON, Feb 21 (Reuters) - The dollar declined against the euro and yen on Thursday on rising concerns that a U.S. economic slowdown will clear the path to further monetary easing, which puts pressure on the currency.

At 0840 GMT, the dollar was down 0.15 percent at $1.4735. The U.S. currency also fell slightly versus the yen, to 108.00 yen, though the move was relatively muted as rising stocks keep the low-yielding yen under pressure. Meanwhile, the euro held steady at 159.10 yen.

Speculation is growing among market participants that the Fed may cut rates by a further 50 basis points at its next meeting in March, which would further erode the dollar's yield appeal.

The euro meanwhile is benefiting from decreasing expectations on the extent of cuts from the European Central Bank.

Source: Reuters