Euro falls further to $1.4284
FRANKFURT, Germany --The euro continued to fall against the dollar Friday after the European Central Bank and the Bank of England left interest rates unchanged Thursday, citing fears of slowing economic activity.
The 15-nation euro fell to $1.4284 in European morning trading, a low not seen since late October of 2007, from $1.4331 Thursday night in New York.
The ECB and the BoE left their benchmark interest rates steady, at 4.25 percent and 5 percent respectively.
ECB President Jean Claude Trichet, in his remarks Thursday, revised 2008 and 2009 euro zone GDP growth to somewhat lower than the bank had predicted in June.
"In the view of the Governing Council, the uncertainty surrounding this outlook for economic activity is particularly high at the current juncture and, generally, downside risks prevail," Trichet said, citing increases in food and energy costs which he said could dampen consumption and investment.
"Step by step, the dollar continues to march higher against the major European currencies as the magnitude of the slowdown on this side of the Atlantic continues to unfold," Gary Thomson, a currency analyst at CMC Markets, said Friday.
"Yesterday's cautionary words by Trichet, whilst at odds with the more bullish statement we saw from the German finance minister Steinbrueck midweek, certainly played to the market's concerns and have helped ease the euro versus the U.S. dollar overnight to lows not seen in almost 11 months."
The British pound also fell to $1.7596, a low not seen since April of 2006, from $1.7690 Thursday, while the dollar bought 106.67 Japanese yen down from the 107.04 yen the night before in New York trading. 