Euro hits month low against dollar

10:46, 05 May 2008
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The exchange rate of the euro fell below $1.55 on May 1

The exchange rate of the euro fell below $1.55 on May 1, for the first time since the end of March, Agence France Pressreports. The fall can be linked to the Institute for Supply Management report for April, which showed that the index of activity in the U.S. manufacturing industry was 48.6 in April, in spite of forecasts that it would fall to 48.

Experts say the report did not provide market players with an objective reason to buy the American currency, but demand for it grew regardless. Demand was also spurred by expectations that the U.S. Federal Reserve Board would take a break now from its aggressive lowering of the base interest rate. On April 30, the board announced that it would be lowered from 2.25 percent to 2 percent, after which the board would refrain from further changes for a certain period.

The exchange rate of the dollar may continue to grow on May 2 in connection with the publication of information on the creation of new jobs in the United States.

AFP, Kommersant

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