Euro v. Dollar.and the dollar looks K O'd!

The European single currency hit a record high of $1.4806 in trading today. The euro surged to the new historic pinnacle after more bad news from the banking sector hit investor confidence in the US economy.
In European trade this lunchtime, the euro beat its previous historic peak of $1.4752 reached on November 9.

The greenback also fell heavily against other major rivals, including sterling, as a slew of negative reports in the banking sector shook investor optimism yesterday.
Goldman Sachs yesterday urged clients to sell shares in US banking peer Citigroup, citing an expected $15 billion write-down in its next fiscal quarter owing to its exposure to the sub-prime mortgage crisis.
Goldman Sachs also downgraded the number two US home-improvement retailer Lowe's on concerns over further deterioration in the housing market, causing concern that consumption could be slowing.

Market players are now turning to minutes of the October meeting of the Federal Open Market Committee (FOMC), due for release later today, to look for clues on the Fed's rate move next month.
The US central bank cut rates twice since September in an attempt to appease distressed financial markets and prevent the US economy from stalling, but the outlook has been muddled by sturdy inflation.

The market was also gripped by rumours of an advance meeting of the FOMC.
Meanwhile, Jean-Claude Juncker, head of the euro zone finance ministers' group, today called for vigilance in the face of exchange rate volatility.
'We deplore the sudden changes in the exchange rates,' Juncker told the European Parliament's economic and monetary affairs committee. 'This means that we will be keeping a very watchful eye on the exchange rate markets,' he added.
He welcomed recent comments by US officials about the need for a strong dollar, and said that the credit crisis there has had 'only a minimal impact' on euro zone growth so far this year. However, he warned that activity could be hit in the future.
Juncker, who is Luxembourg's prime and finance ministers, said the economic situation in the euro zone has been pretty good' this year and last.
However, he said he was 'more and more concerned' about the risks posed by inflation, citing soaring oil prices in particular.

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Euro v. Dollar.and the dollar looks K O'd!