24 July 2009, 18:03  Dollar near October 2008 lows

The dollar continued its path toward parity with Canada's loonie and was unable to sustain its gains from the previous evening versus the euro Friday morning in New York. Its been another rough week for the dollar, as rising stocks and renewed hopes that the economy is on the mend has led traders to seek riskier higher-yielding assets. The safe haven dollar strengthened during the throes of the economic crisis, but has since tailed off due to risk appetite and concerns about government spending. Evidence that the Canadian economy is in much better shape than once feared has crippled the dollar against the loonie of late. Friday morning, the dollar dropped to a new 7-week low of C$1.0830. A move below C$1.0782 seems inevitable, and would take the dollar to its lowest level since October 2008. The dollar eased versus the euro, slipping to 1.4245. In the process, the dollar moved back toward yesterday's 7-week low of 1.4290. German business climate showed a better-than-expected improvement in July, indicating that the biggest Eurozone economy is on the road to recovery, results of a closely watched survey suggested Friday.

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