NEW YORK (AFP) - The US dollar continued its slump at eight month lows against the euro, and six-month lows against the Japanese yen, as traders fretted over the neck and neck US presidential race and an uncertain economic outlook.
At 2100 GMT, the euro was trading at 1.2806 dollars in late New York trade, up strongly from 1.2680 dollars late Friday.
The dollar also declined against the yen, trading at 106.75, down from 107.20 late Friday.
The euro broached the 1.28 dollar mark Monday for the first time in eight months, edging closer to its record peak of 1.2929 dollars struck on February 18.
"The dollar will be hard-pressed to find much support, especially as recent Fedspeak and the burgeoning current-account deficit discourage interest," said Kim Rupert, an analyst with Action Economics.
"But traders are likely to wait until after the election to push (the euro versus the dollar) to fresh 2004 highs," Rupert said.
A combination of factors have conspired to weigh down the dollar: concerns about the huge US current account and budget deficits, some lukewarm economic reports, a depressed stock market and uncertainty over the November 2 presidential election.
Soaring New York oil prices, which have hit record highs in recent weeks, have also fueled concerns about US economic growth. Oil prices, however, offered some slight relief Monday as they receded to 54.54 dollars a barrel.
Even an upbeat economic report failed to lift the dollar's gloom Monday.
US existing home sales unexpectedly shot to the third highest level on record in October, prompted by a scramble for near rock-bottom mortage rates, according to a survey by the National Association of Realtors.
Existing home sales surged 3.1 percent to a seasonally adjusted annual rate of 6.75 million after two straight declines, the NAR said.
The solid gain defied Wall Street economists' forecasts for a modest decline in sales.
In late New York trade, the dollar stood at 1.1963 Swiss francs from 1.2105 Friday.
The pound stood at 1.8409 dollars, from 1.8277 Friday.
10/25/2004 - 21:52 GMT - AFP