02/28/08: Economy stalled in 4th Qtr, dollar still diving

Remember when rightwingers were mocking the Euro as a loser currency? Their spin now is getting more and more hilarious. They are desperate to make loser Bush look better.

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Dollar sinks to new low in Europe on U.S. economic news

BERLIN (AP) — The dollar dipped to another record low Thursday as the U.S. Commerce Department reported no improvement in its second look at fourth-quarter economic activity.

The 15-nation euro bought $1.5150 in early European trading — up from $1.5120 in New York the previous night and above a record $1.5143 earlier Wednesday. The euro gave up a little ground and was trading at $1.5122, still above Wednesday's close.

The British pound rose to $1.9846 from $1.9842. The dollar dipped to 106.01 Japanese yen from 106.45 yen.

The Commerce Department said as it did a month ago that gross domestic product increased at a scant 0.6% pace in the October-to-December quarter. Commerce frequently revises its GDP estimates twice after the initial report, but the GDP figure was not revised Thursday.

The reading on gross domestic product underscored just how much momentum the economy lost in the final quarter, dragged down by a scarcity of credit and a plunging housing market.

The euro topped $1.50 for the first time since its 1999 introduction early Wednesday, then surged above $1.51 after markets took comments from Federal Reserve Chairman Ben Bernanke as a sign that more U.S. rate cuts are on the way. (AP)

http://www.usatoday.com/money/markets/2008-02-28-dollar-thurs_N.htm

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