The dollar dipped below 100 yen for the first time in 12 years Thursday and hit record lows against the euro amid a growing consensus that synchronized efforts by central banks will not stop a deterioration in the U.S. economy.The euro exceeded $1.56 for the first time and the dollar fell as low as 99.75 yen before bouncing back to 100.16 yen. It was the first time the U.S. currency has traded below 100 yen since November 1995.
The dollar has been declining on growing speculation that the Federal Reserve will cut interest rates further to shore up the sagging American economy and calm jittery financial markets.
“The momentum is definitely downward for the dollar,” said Daisaku Ueno, senior economist at Nomura Securities Co. “With the momentum going like this, no one knows where it will stop.”
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