Euro loses ground against the Dollar (Bloomberg)  (03-04-2008)

April 3 (Bloomberg) -- The euro declined against both the dollar and the yen as investors speculate that the slowing U.S. economy will slow growth in Europe, leading to a reduction in interest rates.

The currency weakened versus all but one of the most actively traded currencies after a European Union report showed retail sales unexpectedly declined in February. Bayerische Landesbank, Germany's second-biggest state-owned bank, reported $6.7 billion in writedowns today as the contagion from the subprime-market collapse deepened.

The euro declined to $1.5586 at 10:25 a.m. in London, from $1.5686 in New York yesterday, when it rose 0.5 percent. It fell to a five-week low against the Japanese yen of 161.07 before trading at 160.20. Against the British pound, the euro slid to 78.68 pence from 78.92 pence. The euro may still surpass $1.60 in the next month, according to Hardman.

 Source: Bloomberg