The dollar dipped below 100 yen for the first time in 12 years Thursday amid growing worries about a U.S. economic slowdown and expectations for lower U.S. interest rates. The dollar also fell to record lows against the euro, which rose above $1.5625 mid-morning Thursday, beating the record $1.5559 it reached the day before.The dollar fell as low as 99.75 yen, according to Thomson Financial, before bouncing back above 100. It was the first time the Japanese currency had traded below three figures 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.
Analysts said the dollar's nose-dive may be unstoppable for now, but they said they expect the dollar-selling to settle down eventually.
Read More
