Dollar plunged to a Record Low Vs Euro and a 12-year low Vs Yen (AP) (17-03-2008)

TOKYO (AP) -- The dollar dropped to a fresh record low against the euro and to its lowest level in over twelve years against the yen Monday in nervous reaction by investors after the news that JP Morgan Chase is buying rival investment bank Bear Stearns.

The move, aimed at averting a bankruptcy, sparked renewed worries among traders about the full extent of the credit crisis, sending Asian stock markets tumbling.

The greenback also weakened by word that the Federal Reserve on Sunday cut its lending rate to financial institutions, by a quarter point to 3.25 percent.

The dollar dropped to 95.72 yen, its lowest point since August 1995, in morning trading in Tokyo before recovering to 96.76 yen in afternoon trading. The dollar finished in New York trading on Friday at 99.17 yen. It broke below 100 yen just last Thursday.

The euro rose to a record against the dollar, climbing as high as $1.5903.

Japanese officials quickly called for calm in the currency markets, but did not announce any plans for intervention to shore up the greenback by buying up dollars.

Source: AP