Sunday, April 12, 2009

WORLD FOREX: Euro Hits 3-Week Low In Thin Holiday Trade

NEW YORK (Dow Jones)--In thin holiday trading, the euro extended a week-long decline overnight Friday to more than a three-week low against the dollar.

The common currency has now totally unwound its gains versus the dollar in the wake of the Federal Reserve's mid-March decision to purchase longer-term Treasury notes and bonds. Profit-taking and positioning ahead of the Easter break was behind much of the euro's slide this week.

The dollar had also been supported by a report Thursday that showed the U.S. trade gap shrank to its narrowest deficit in nearly a decade and on a strong first-quarter earnings

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