Dollar slumps to fresh record low against euro

The dollar hit a new record low against the euro Friday after Federal Reserve chairman Ben Bernanke painted a gloomy picture of the US economy that fuelled speculation about another US rate cut, dealers said.
The euro jumped to an historic high of 1.4752 dollars in early European trade, also a day after the European Central Bank kept its key interest rate at 4.00 percent.
The European single currency later stood at 1.4737 dollars, from 1.4676 in New York late on Thursday.
"Not even Bernanke's reference to the upside risks for inflation has been able to deter (US) rate cut expectations among investors, in particular as the economic slowdown against the background of rising inflationary pressures can only be considered to be detrimental for the dollar," Commerzbank currency strategist Antje Praefcke said.
In his testimony to Congress Thursday, Bernanke focused on the risks to growth and expectations of a significant slowdown in the fourth quarter and into 2008.
"Further sharp increases in crude oil prices have put renewed upward pressure on inflation and may impose further restraint on economic activity," Bernanke told lawmakers.
He said consumer spending was likely to grow more slowly in view of higher energy prices, credit issues and continuing weakness in housing.