Jan. 15 (Bloomberg) -- The dollar traded close to a record low versus the euro before a report that economists expect will show U.S. retail sales growth stalled in December.
The dollar has declined versus 14 of the 16 most-active currencies this year as traders start to price in odds the Federal Reserve will cut benchmark borrowing costs by as much as 0.75 percentage-point this month. The Mortgage Bankers Association yesterday forecast U.S. existing home sales will fall 13 percent this year before recovering in 2009.
``Heightened expectations of the Fed cutting interest rates has been the theme that is the nemesis of the dollar,'' said John Kyriakopoulos, a Sydney-based currency strategist at National Australia Bank Ltd., the nation's largest lender. ``There are some downside risks around the retail sales number.''
The dollar traded at $1.4877 against the euro at 11:42 a.m. in Tokyo compared with $1.4869 yesterday in New York. It reached an all-time low of $1.4967 on Nov. 23 and may weaken to about $1.50 per euro this week, Kyriakopoulos said.
The U.S. currency was at 107.98 yen from 108.16 yen. The euro traded at 160.65 yen from 160.84 yen. The pound bought $1.9560 from $1.9559.
U.S. Rates
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