Thursday, July 3, 2008

Dollar Falls to Two-Month Low Against Euro on ADP Jobs Report

Dollar Falls to Two-Month Low Against Euro on ADP Jobs Report

July 2 (Bloomberg) -- The dollar fell to a two-month low against the euro as a report showed U.S. companies shed more jobs last month than economists forecast, reducing bets that the Federal Reserve will increase borrowing costs next month.

The U.S. currency also weakened as economists predicted that the European Central Bank will raise its main refinancing rate by a quarter-percentage point tomorrow while the U.S. Labor Department will say employers eliminated jobs in June for a sixth straight month. The Australian dollar approached a 25-year high as retail sales grew at the fastest pace in six months.

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