Dollar Falls to Record Lows Against Aussie, Franc on Debt Talks

Discussion in 'Wall St. News' started by ASusilovic, Jul 27, 2011.

  1. July 27 (Bloomberg) -- The dollar slumped to record lows against the Swiss franc and the Australian and New Zealand dollars as President Barack Obama and lawmakers argued over plans to raise the U.S. debt limit and prevent a default.

    The yen reached the strongest level in four months versus the dollar. The euro fell against the yen and retreated from a three-week high versus the dollar as German Finance Minister Wolfgang Schaeuble said his country opposed a "blank check" for the euro-area rescue fund to purchase bonds on the secondary market. Australia's dollar climbed after data showed inflation accelerated. U.S. data today is forecast to show demand for durable goods grew at a slower pace.

    "The foreign-exchange market is acting like this is the only thing going on in the world" for the dollar, said Kathleen Brooks, research director in London at, a unit of the online currency trading company Gain Capital Holdings Inc., referring to the U.S. debt impasse. Currencies including the U.K. pound "are being lifted on this wave of dollar-selling," she said.

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