Wednesday, March 12, 2008

Dollar Falls to Lowest Since '95 Versus Yen; Bush Cites Decline

By Ye Xie

March 12 (Bloomberg) -- The dollar fell to the lowest since 1995 against the yen after President George W. Bush said the dollar is ``adjusting.''

The U.S. currency plunged to a record low against the euro earlier as firms from Citigroup Inc. to Goldman Sachs Group Inc. said the Federal Reserve's plan to inject $200 billion into the banking system may fail to break the freeze in money-market lending. Bush's comments were in an interview with the U.S. Public Broadcasting Service to be aired later today.

``We have a perfect storm brewing here,'' said Alan Ruskin, head of international currency strategy in North America at RBS Greenwich Capital Markets Inc. in Greenwich, Connecticut.

The dollar traded at $1.5568 per euro at 5:53 p.m. in New York. It touched $1.5573 per euro, the weakest level since the European currency's 1999 debut. The U.S. currency dropped to 101.35 yen, from 103.42 yesterday, and touched the lowest since December 1995.

Bush also reiterated his commitment to a strong dollar.

``We have a dollar that's adjusting, and I am for a strong dollar,'' he said.

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