Dollar hits new lows vs euro, yen on US rate cut bets

London

THE US dollar fell to a three-month low against the euro and dropped to its weakest against the Japanese yen since early January as the prospect of monetary easing by the Federal Reserve knocked demand for the US currency.

The euro hit a three-month high of US$1.1412, having gained 2 per cent from a two-week low of US$1.1181 touched a week ago. It last stood at US$1.1382, down 0.1 per cent on the day.