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Greenback Falls Further Against Euro

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The dollar continued to decline versus the euro but managed to hold its ground versus other major currencies as traders looked ahead to a deluge of key economic data due out over the next few days.

An orderly retreat from the world's reserve currency drove the dollar fell to a 2009 low versus a basket of major counterparts last week.

With little first-tier economic data to consider on Monday, attention was paid to increasing tensions between the US and China.

Beijing launched anti-dumping and anti-subsidies probes into certain automobile and chicken products made in the U.S., days after President Obama slapped a tariff on Chinese tires.

Meanwhile, as the government prepares to pull back its bailout of the financial system, Obama Monday made the case for sweeping new regulations to govern the system.

The dollar dropped to a new 2009 low of 1.4651 versus the euro, extending a significant recent downtrend.

The European Commission kept its economic outlook unchanged from May's spring forecast. Gross domestic product or GDP is expected to fall 4% this year in both the Eurozone and in the EU.

Meanwhile, the dollar was steady versus the sterling, holding near 1.6600. Late last week, the dollar hit a monthly low of 1.6741.

Also, the buck was stable versus the yen, improving to 91 from its 6-month low of 90.18. Last week, the dollar tested its 13-year low of 87.08, set back in January.

Looking ahead to later this week, the Commerce Department's retail sales report for August, the results of the New York Federal Reserve's and Philadelphia Federal Reserve's manufacturing surveys for September and the Federal Reserve's industrial production report for August may be closely watched.

(Market News Provided by RTTNews)

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