The dollar fell to a new record low Monday against the euro, which rose to $1.3554 as the dollar's slide continued in post-Christmas trading.
The new high surpassed the previous mark of 1.3548 set on Friday in light pre-holiday trade. The dollar has fallen steadily against the euro and other major currencies in recent weeks on worries over the large U.S. trade and budget deficits -- factors which can undermine a country's currency.
With no short-term fix for those deficits in sight, many analysts expect the dollar to continue weakening and some have predicted a euro level of $1.40 or higher by the end of 2005.
Though Washington professes a "strong dollar" policy, most observers believe the United States government is content to see the dollar fall because it makes U.S. exports cheaper and can help export-dependent sectors of the economy.(Reuters)