U.S. dollar slips against euro - East Valley Tribune: Business

U.S. dollar slips against euro

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Posted: Monday, September 26, 2005 5:25 pm | Updated: 9:59 am, Fri Oct 7, 2011.

FRANKFURT, Germany - The dollar fell slightly against the 12-nation euro Monday as dealers assessed hurricane damage to U.S. oil production

Traders fretted that imports would rise as domestic rigs and refineries struggled to resume operations.

"The bill for Katrina is coming into focus," University of Maryland Professor Peter Morici said. "We're going to spend too much money on imported oil and the dollar is going to weaken."

The euro bought $1.2053 in late New York trading, up slightly from the $1.2051 it bought late Friday in New York.

The dollar rose against the euro earlier in the day after a government report showed home prices in the U.S. rose at the fastest pace in 26 years.

The euro was also weighed down by concern about the formation of a new government in Germany, Europe's biggest economy. The Sept. 18 election left both a center-left coalition and a conservative challenger without a majority, and neither side has been able to form a government.

If the stalemate continues "and we still don't get any resolution, it could weigh even more," said Lee Ferridge, an analyst with Rabobank in London.

The British pound fell to $1.7755 from $1.7771 on Friday after British Treasury chief Gordon Brown blamed low economic growth in Europe and soaring oil prices for crimping the expansion of Britain's economy.

Over the weekend, he warned the International Monetary Fund that British economic growth would be at or slightly below its trend growth rate of 2.5 percent this year - well below the forecast of 3 percent to 3.5 percent growth that he gave in his March budget statement.

The dollar was unchanged from late Friday at 112.32 Japanese yen. The dollar rose to 1.2914 Swiss francs from 1.2911, and fell to 1.1698 Canadian dollars from 1.1700.

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