Euro falls against US Dollar (AP) (04-03-2008)

BERLIN (AP) -- The common European currency slipped from its all-time high Tuesday remaining above the US$1.50 mark as traders were trying to figure out what the Fed’s next move will be regarding interest rates.

The euro was worth US$1.5183 in morning trading in Europe, down from US$1.5192 late in New York on Monday, when it hit the new all-time high of US$1.5266. The British pound rose slightly to US$1.9861 from US$1.9847 in New York, while the dollar fell to 103.52 Japanese yen from 103.96 the day before.

The dollar was battered Monday after a series of weak economic reports from Washington.

On Tuesday several U.S. Federal Reserve officials will give speeches including Chairman Ben Bernanke, and traders will be looking for indications regarding interest rate moves.

Speculation was growing that the Fed might cut rates by as much as 75 basis points this month, and while lower interest rates can jump-start a nation's economy, they can weaken its currency as traders transfer funds to countries where they can earn higher returns.

Source: AP