Dollar Surges Versus Euro on Global Slowdown Concern

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The dollar surged the most in three weeks against the euro after the Federal Reserve yesterday said economic growth had slowed and the recovery was weaker than it had anticipated, spurring demand for safer assets. The yen strengthened past 85 per dollar for the first time since Nov. 27 after reports showed U.K. consumer confidence dropped and China said industrial output grew at the slowest pace in 11 months. The pound fell for the third day against the dollar before a central-bank report that economists say will reduce 2011 growth forecasts. “The fact that the Fed is now acknowledging slower growth than expected in the near term has hit risk assets,” said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “That’s bringing back safe haven flows into the dollar.” Read more here:

Dollar Surges Versus Euro on Global Slowdown Concern