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The article reports on the decline of euro against U.S. dollar to one-year low and yen to two-year low on October 2, 2008 due to decrease in euro-zone interest rate and a recession. The euro fell to $1.3746 and 144.88 yen. UBS analysts had advised selling euro against the dollar, British pound, Swedish krona and Swiss franc. Euro has slumped after European Central Bank president Jean-Claude Trichet said that inflation risks in euro-zone have decreased.

The article considers the efforts of the administration of U.S. President George W. Bush to prevent the decline in the value of the dollar following the release of weak economic data in the country and talk of an interest-rate increase in Europe in June 2008. The president commented that the currency will reflect the long-term strength of the U.S. economy. There was an appreciation in the value of the dollar against the Japanese yen due to Bush's comments. it mentions the reluctance of the U.S. government to intervene in the currency markets.

The article reports on the decline of the U.S. dollar against the euro after European Central Bank (ECB) head Jean-Claude Trichet hinted possible increase in interest rates in July 2008. The dollar fell by 1.1% against the euro on June 4. The news about the interest rate hike had made the euro attractive to investors as it increases the yields of euro-based assets. The interest rate ECB is twice as much of the 2% of the Federal Reserve. The euro traded at $1.5599 in New York from $1.5435.

The article reports on the decline of the U.S. dollar against euro on April 22, 2008. The euro climbed to $1.60 after Bank of France governor Christian Noyer urged the European Central Bank (ECB) to increase the benchmark interest rate. Noyer said that the proposal aims to reduce the inflation. The increase in interest rate would provide higher yield advantage to euro-based assets over those based in dollars.

The article discusses recent strength displayed by the U.S. dollar. As the U.S. economy has showed signs of faltering, the dollar has declined relative to other currencies. Expectations that the U.S. Federal Reserve will be finished cutting interest rates by the summer of 2008, however, coupled with fears that European interest rates could soon fall, have helped buoy the dollar.

The article speculates on European monetary policy and foreign exchange rates in the second week of May 2007. Analysts expect the euro to trade between $1.345 and $1.368, compared to $1.3597 in May 4. The Bank of England is likely to raise it key rates by a quarter of percentage points to 5.5 percent. The European Central Bank is likely to maintain the prevailing interest rates.