The dollar fell to a new record low against the euro for a sixth successive session on Thursday, as investors braced for more economic reports that could reinforce expectations of another interest rates cut in October.
Economic data this week have provided no respite for the beleaguered dollar and have supported the view the Fed will cut its benchmark rate again after last week's half percentage point easing to 4.75 percent.
Overall, the reports provided evidence of further U.S. housing market decline, deteriorating consumer confidence and a sharper-than-expected fall in durable goods orders.
However, Fed funds futures show the chance of an October rate cut is down to about 84 percent from a high of 92 percent helped by steadier equity markets this week.
Nevertheless traders will look to data due later in the day on sales of new homes in August and weekly jobless claims to see whether they makes a stronger case for the Fed to cut again, which would further hurt the dollar's yield appeal.
"The dollar has weakened across the board and that mood remains...The euro can test $1.4180 if the data is particularly black this afternoon in the U.S., especially the housing numbers," said Roberto Mialich, FX strategist at UniCredit.
However he added that in line with trends seen in recent sessions, a fresh leg higher in euro/dollar would probably be followed by a mild bout of profit-taking.
The euro rose to a new peak of $1.4166 versus the dollar, according to Reuters data, before easing a little to stand at $1.448 by 0959 GMT. It has risen nearly 4 percent against the dollar so far this month.
(Reuters)