Head in the Sand (or somewhere else) On Dollar Decline
Dollar Falls to Record Low Against Euro on Rate Differential
By Lukanyo Mnyanda and Kosuke Goto
Sept. 12 (Bloomberg) -- The dollar fell to a record low again against the euro as investors bet the Federal Reserve will reduce its target interest rate, narrowing the gap between the U.S. and Europe.
The currency declined for a sixth day, the longest losing streak since April, after the National Association of Realtors yesterday cut its home sales forecast, stoking concern the housing slump is spreading. Investors meanwhile added to wagers the European Central Bank will raise borrowing costs by year-end.
``The fundamentals for the dollar remain poor because the Fed's the only major central bank that's likely to cut interest rates,'' said Adam Cole, head of global currency strategy at RBC Capital Markets in London.
Anyone who believes the problems with the fall of the dollar are related to the sub-prime bubble bust, hou…