Dollar hits record low vs euro after housing data
The dollar hit a record low against the euro on Tuesday as U.S. homebuilding permits fell to a 14-year low in October, stoking fears about housing sector weakness and expectations of lower U.S. interest rates.
The euro rose to an all-time high of $1.48, up 0.9 percent, according to Reuters data, after a report showed building permits fell 6.6 percent to a 14-year low in October.
The housing market in the United States is still weak, and nothing in these numbers is encouraging people to think otherwise, said Firas Askari, head currency trader at BMO Capital Markets in Toronto.
The Fed is still going to be data-dependent. The Fed is reluctant to add more easing into the market, but the market is probably looking for more easing.
The Federal Reserve publishes the minutes of its October 30-31 Federal Open Market Committee policy meeting at 2:00 p.m. EST, and will issue more detailed and extensive economic forecasts. Its next scheduled policy meeting is on December 11.
Speculation that Gulf countries may revalue or ditch their dollar currency pegs also weighed on the greenback on Tuesday, sending it to a record low against the Swiss franc at 1.1071.
The low-yielding yen also fell as a rebound in global equities perked up demand for high-yielding currencies. The euro was up 1 percent at 162.49 yen, though the dollar pared earlier gains after the housing data to trade flat at 109.82 yen.
The euro also hit a 4-1/2-month high against the British pound, rising to 71.76 pence, according to Reuters data.
(Additional reporting by Lucia Mutikani)
(Editing by Kenneth Barry)
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