Potential Rate Cuts Prompt Euro’s Rise Against the Dollar

New York–The euro hit a new high against the dollar Wednesday as weak U.S. housing results and Federal Reserve comments suggested future rate cuts, The Financial Times reports.Declining consumer confidence and U.S. home prices–coupled with an increase in producer price inflation and comments from the Federal Reserve’s Don Kohn about reduced growth being a greater risk than inflation–helped the euro rise above the dollar.The considerable recent rate cuts most likely would not halt the ongoing economic weakness in the U.S., according to Kohn.