The dollar weakened further against other major currencies on Friday

2/22/2008 3:03:35 PM The dollar weakened further against other major currencies on Friday as
investors were unable to shake fears that the US economy slipped into recession mode in January.

Trading was subdued, with many waiting on the sidelines until next week, when a host of economic
data could give additional clues about the state of the economy.

Monday will see the release of pivotal data on the housing sector. Analysts are predicting that sales
of existing homes in the US fell for the tenth month in eleven in January.

The dollar ended a negative week versus the euro in characteristic fashion on Friday, slipping to a
3-week low of 1.4862 before levelling off. The buck inched closer to November's record low of 1.4947.

Euro zone's service sector growth gained steam in February, slightly dampening expectations of
an interest rate cut from the region's central bank.

Elsewhere on Friday, official data revealed that French consumer spending declined more
than expected in January weighed down by a sharp decline in car purchases.
A separate report indicated that French business confidence continued to deteriorate in February.

The dollar fell for a third day in a row versus the yen, dropping to a 10-session low of 106.73.
The buck moved away from Tuesday's monthly high of 108.60 as traders
expresses aversion to risk as equities markets weakened.

The Japanese government downgraded its monthly economic assessment for the
first time since November 2006. The cabinet office said Friday, in its February report
that the economy has been expanding at a slower pace due to sluggish production and exports.

The greenback slipped extended its dramatic three-day decline versus the sterling, f
alling almost a cent to a weekly low of 1.9707. The buck dropped over 3 cents in
as many days to pull back from Tuesday's monthly high.

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