(RTTNews) - The dollar weakened versus the euro on Monday morning, slipping to $1.50 as US stocks looked to advance at the opening bell, fueling renewed risk aversion.
Meanwhile, heavy losses over the past month have dragged to the dollar to its lowest since early August versus the sterling, with traders now betting the Bank of England will wind down economic support measures sooner than later.
US Treasury Secretary Tim Geithner on Friday told fellow G-8 Finance Ministers meeting in Scotland that economic stimulus measures must be kept in place until the global economic recovery is secures.
Monday's economic calendar is bereft of first-tier economic data from the US, leaving traders to ponder Friday's troubling jobs report. The unemployment rate jumped to 10.2%, its highest level in 26 years, signaling the Fed will keep interest rates near zero until an organic, consumer-driven recovery can take hold.
The Treasury is set to announce the results of its 3-year note auction at 1 PM ET.
The dollar dropped to 1.5010 versus the euro, testing its 14-month low of 1.5059, set a few weeks ago. Its been a brutal stretch for the dollar versus the euro, dropping more than 25 cents from its 2009 highs.
The buck fell to 1.6842 versus the sterling, hitting its lowest level since August. Less than a month ago, the dollar was sitting at 1.5700, but has since tumbled on speculation the interest rate gap between the US and UK will widen.
The dollar remained choppy versus the yen, holding just below the 90 mark. Similar uncertainty was seen against the loonie, with the dollar falling a Canadian cent to C$1.0691.
In economic news from overseas, German industrial production fell 2.7% month-on-month in September after a revised increase of 1.8% in August, the Federal Ministry of Economics and Technology said Monday. Economists had expected 1% increase.
Back in the US, the weekly jobless claims report and the preliminary report of the Reuters/University of Michigan's consumer sentiment survey are the only major data points on tap this holiday-shortened week.
Wednesday is Veteran's Day in the US.
by RTT Staff Writer
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