To: LLCF who wrote (167007 ) 5/21/2002 3:56:30 AM From: maceng2 Read Replies (1) | Respond to of 436258 Dollar hits 2002 lows as turn of tide seen (note #1 Geez these guys spelling is getting as worse as mine..pb) (note #2 Dollar back up to 113 at 9 am uk time quotes.ino.com news.ft.com The dollar fell to new lows for the calendar year against other leading currencies on Monday as nvestors became increasingly convinced that the the US currency had entered a downtrend. The US currency fell through key levels on Friday and hit 2002 lows against the euro, the Swiss franc and the yen, falling further in Monday’s early European trade. While dollar bulls warned profit-taking on Friday’s sharp moves could boost the dollar, others noted the shallowness of the currency’s recoveries over the last two weeks suggested a growing conviction that the currency had reached the peak of its seven-year bull run. The US currency could remain trapped in tight ranges against other leading currencies as investors wait for economic data later in the week for more evidence on the US recovery. April’s durable goods orders on Thursday is a key release this week and investors will want to see a rise. “The main concern is that busines spending will not rise with sufficient pace to offset any moderation from the consumer,” said ABN Amro in a research note. The euro rose to a seven-month high at $0.9234 against the dollar in European trade, before easing to $0.9214. It closed at $0.9203 in New York on Friday. The US currency fell as low as ¥125.35 against the yen, a five-month low, aided by an apparent softening of the Japanese authorities’ view over a stronger yen. Officials repeated that they stood ready to take appropriate action if the currency moves too abruptly, but the market ignored the comments. Analysts have largely dismissed the threat of intervention above ¥125, and many also discount the likelihood of an official move above ¥120, given that the comprehensive nature of the dollar’s weakness would be likely to make it difficult. But while other currencies gained against the dollar, sterling failed to keep up, undermined by its weakness against the euro. The pound hit a seven-month low against the single currency on Friday and remained weak on Monday as debate continued over the possible timing of a UK referendum on euro entry. “Although much of the [news] is not new information, [it] was sufficient for euro sterling to break up through its 17-month downtrend,” said Kamal Sharma, currencies strategist at Commerzbank. The euro was at £0.6315 against sterling, compared with Friday's New York close of £0.6318, a seven-month high.