Read More Here: "Aug. 14 (Bloomberg) -- The euro dropped to a 5 1/2-month low against the dollar after crude oil fell and a report showed Europe's economy contracted for the first time since the 15- nation currency was introduced almost a decade ago.
The dollar has ``bottomed'' against the euro, said Goldman Sachs Group Inc. in a revision of its forecast for the U.S. currency. The pound fell to the lowest in 22 months against the dollar on concern Britain's economy is falling into a recession.
``Not only is the European economy weakening, but the growth outlook is to remain weak,'' said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon, the world's largest custodial bank, with more than $23 trillion in assets. ``A further move down in crude oil will be a bullish sign for the dollar.''
The euro fell 0.7 percent to $1.4809 at 4:04 p.m. in New York, from $1.4919 yesterday. It touched $1.4778, the weakest since Feb. 21, compared with the all-time high of $1.6038 set July 15. The euro dropped 0.7 percent to 162.36 yen, from 163.43 yesterday, when it reached a three-month low of 161.40. The dollar increased 0.1 percent to 109.63 yen, from 109.53."
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