us dollar weakness worries eu

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    Outgoing European Union Trade Commissioner Pascal Lamy says the US dollar is falling too rapidly in the face of massive budget and current account deficits in the United States.

    Mr Lamy says the weakness is worrying, but he says the trend is hardly surprising considering the level of the US deficits.

    While the US Treasury continues to insist the Bush administration favours a strong dollar, foreign exchange markets assume Washington is happy with a weak currency as a means to bolster exports.

    Meanwhile in the London trading session overnight the euro hit an all-time high of 1.3095 before investors in New York bought back the greenback.

    Mr Lamy's term as EU Trade Commissioner ends this weekend.

    - AFP
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