The dollar dropped close to an eight-month low against the euro as speculations rose on the decision of the Federal Reserve policy makers regarding the purchase of more government debt.
The greenback has not seen any palpable rise in its fortunes as it has seen its biggest drops against the yen in 15 years. The euro has also fared better versus the dollar as the International Monetary Fund's weekend meeting concluded with little hopes for major policy changes or any positive signs about economic recovery. The U.S. job cuts have not seen any improvement in recent months and this has added further woes to the weakened dollar.
Analysts think that the euro will see a correction in the coming days as its rise has not been as higher as expected by some economic forecasts.
The dollar was trading at $1.3937 per euro as of 8:51 a.m. in London from its previous exchange rate of $1.3939 per euro in New York on Oct. 8. The greenback dropped to $1.4029 on Oct. 7, which was its lowest level since Jan. 28. The dollar saw an improvement in its trading rate with the yen as the recent exchange rate stood at 82.06 per yen from its previous low of 81.93 yen last week
The dollar dropped to 81.39 yen earlier, which was the weakest position of the U.S. currency since April 1995. The euro also saw a surge against yen when it rose to 114.36 yen from its previous position of 114.19 yen.
