Euro falls again to a new low

THE EURO slipped to a new low against the dollar yesterday after breaking through the psychological barrier of $1.04. The European single currency hit a new low for the third successive day, briefly touching $1.0398 in thin trading in New York. The latest fall was prompted by a recovery in shares on Wall Street in early trading.

The fall wiped out earlier gains that followed comments by Hans Tietmeyer, the Bundesbank president, that he "would not be happy" if the euro declined further. The euro rose half a cent to an intraday high above $1.05 but fell to $1.0435 in later European trade. Analysts said dealers would test $1.0345, equivalent to the dollar/D-mark high in August 1987, to see if there was support for the currency. The euro has fallen 12.5 per cent since its launch amid outlooks for sluggish growth in Europe and robust US growth.