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Following Fed revision, dollar plunges to new record euro low

NEW YORK, Nov 21, 2007 (AFP) - The dollar slumped to a fresh record low against the euro Wednesday as weaker US growth projections and the prospect of another cut in interest rates hurt the greenback.


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The European single currency struck a record peak of 1.4870 dollars -- the highest since the euro's creation in 1999.

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At 2200 GMT, the euro stood at 1.4854 dollars, compared with 1.4836 in New York late on Tuesday.

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The dollar fell to 108.38 yen, against 109.98 late on Tuesday, after earlier touching 108.

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27 yen, the lowest since June 2005.

The markets were still weighing the Federal Reserve's latest assessment of the US economy projecting slower growth and tame inflation in 2008.

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"The combination foreshadows future interest rate cuts, ultimately lowering the US dollar's appeal to foreign investors," said PNC Bank analyst John Sylvia.

"Increased downward pressure on the greenback can also be found in concerns of whether or not the Persian Gulf countries will terminate their peg to the US dollar.

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"

The US central bank on Wednesday trimmed back its growth projections citing weakness in housing and tighter credit conditions, but suggested policymakers are unsure about future

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