US Dollar falls against Euro

NEW YORK, Nov 24, 2006 (AFP) – The euro soared against the dollar Friday in volatile trading which saw the euro surpass the 1.30 dollar mark, hitting the highest level against the US currency since April 2005, traders said. The euro was changing hands at 1.3094 dollars at 1900 GMT, up from 1.2948 dollars late on Thursday, but off an earlier high of 1.3109; the euro’s highest mark against the dollar since April 21, 2005.

The euro also hit fresh highs against the Japanese yen, rising to 151.74, compared with 150.47 a day earlier.

The dollar meanwhile was quoted at 115.59 yen, down sharply from 116.25 yen late Thursday, and its lowest level against the yen since December 2004.

Traders said the dollar had slumped heavily on the foreign exchange markets for several reasons.

Some market-watchers said technical factors, such as a wave of automatic dollar selling orders that were executed when the euro broke through the 1.31-dollar level, had been partly responsible.

Others cited concerns about prospects for the US economy. Growth in the world’s largest economy slowed to an annual pace of 1.6 percent in the third quarter from 2.6 percent in the second and a blistering 5.6 percent clip in the first.

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