NEW YORK, Nov. 20 (Xinhua) -- The dollar fell to a new low against the Euro on Tuesday after the Federal Reserve said a housing slump, tighter credit conditions and high oil prices would likely slow the U.S. economic growth in 2008.

    The dollar also fell on speculation a group of six Arab nations will end their fixed exchange rates to the U.S. currency. Gulf states face rising price pressure caused in part by the weakening dollar that has made imports from Europe more expensive.

The graphic chart shows the rate of the euro against U.S. dollar in the past 12 months. Euro created a new record level against U.S. dollar after rose to 1 Euro to 1.4815 dollars in New York on Nov.20, 2007. (Xinhua Photo/Zhang Liyun) Photo Gallery>>>

    The dollar fell 1 percent to 1.4809 dollars per euro at 4 p.m. in New York and touched 1.4822 in earlier trading, the cheapest level since the 13-nation currency started trading in January 1999.

    The U.S. currency weakened 0.7 percent to 1.1078 versus the Swiss franc and reached an all-time low of 1.1057. The dollar rose0.2 percent to 109.94 yen. The pound gained 0.8 percent to 2.0661 dollars.

    The Fed's forecast for the U.S. growth to slow next year to between 1.8 percent and 2.5 percent, sharply down from the 2.5 to 2.75 percent forecast in June, suggested to some investors that the Fed will have to cut benchmark lending rates again in December or earlier to prevent the economy from stalling further.

    "The trend of a weakening dollar will continue," said Adam Boyton, a senior currency strategist in New York at Deutsche Bank AG, the world's largest currency trading bank.

    The dollar will decline to 1.50 dollars per euro by the end of the year, according to Boyton. The Euro will trade at 1.45 dollars by year-end, according to the median forecast of 43 analysts and brokerages surveyed by Bloomberg News.

Fed cuts forecast for U.S. economic growth next year

    WASHINGTON, Nov. 20 (Xinhua) -- The U.S. Federal Reserve slashed on Tuesday its forecast for the U.S. economic growth to a range of 1.8 to 2.5 percent in 2008 from the 2.5 to 2.75 percent pace it forecast previously.

    "These revisions to the 2008 outlook since June stemmed from a number of factors, including the tightened terms and reduced availability of subprime and jumbo mortgages, weaker-than-expected housing data, and rising oil prices," the central bank said in its first quarterly economic forecast report under a new policy.  Full story

Crude prices top 95 U.S. dollars as dollar hits new low against euro

    NEW YORK, Nov. 20 (Xinhua) -- Crude prices rose above 95 U.S. dollars Tuesday morning amid the currency's new low against the euro.

    The euro reached a record high of 1.4806 dollars in London Tuesday, as investor confidence in the U.S. economy was hit by the banking sector. Full story