Dollar Declines as Report May Show U.S. Manufacturing Slowed
The dollar fell against the euro, extending last year’s 10 percent decline, on speculation a slowdown in U.S. manufacturing will give the Federal Reserve more reason to lower interest rates.The dollar dropped near the lowest in three weeks versus the yen on speculation the Institute for Supply Management will say today that factories expanded production at the slowest pace in 11 months in December. The U.S. currency weakened against 13 of the 16 most actively traded currencies as traders bet the central bank will reduce borrowing costs at least twice in 2008. Read more from Bloomberg.