Dollar edges up from record lows

The dollar edged up from record lows against the euro and a basket of currencies this morning after euro zone officials expressed…

The dollar edged up from record lows against the euro and a basket of currencies this morning after euro zone officials expressed concerns about the sharp rise of the euro.

The euro slipped 0.1 per cent to $1.5185, while the single currency recovered against the yen to trade at 157.00 yen after falling below 156 yen for the first time in about three weeks yesterday.

The dollar's trade-weighted index against six major currencies was 73.733 It hit 73.354 yesterday, its lowest level since it was created in 1973.

The euro's earlier surge prompted verbal intervention by euro zone finance ministers as well as European Central Bank President Jean-Claude Trichet today.

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Jean-Claude Juncker, chairman of the Eurogroup of finance ministers, said the ministers and Mr Trichet had discussed exchange rate policy at length and agreed to express concerns about excessive moves.

The euro has gained nearly 3.5 per cent against the dollar in the past week, while the US currency has tumbled 5 per cent versus the yen on expectations the Fed will keep cutting interest rates aggressively to fend off a recession.