Euro Falls On the "downside risks"; Dollar Related to Step Up Bernanke

The euro fell within one-month low against the dollar related to European Central Bank President Jean-Claude Trichet said that "downside risks" to economic areas has been intensified, dampen the prospect of rising interest rates.

The dollar rose and stocks fell after Federal Reserve Chairman Ben S. Bernanke stop signal that the central bank will take steps to boost growth. 17 nation euro dropped against all except the main partner countries of the Swiss franc after Trichet said inflation risks were lowered. Franc fell as investors speculated that the central bank will stand firm in the promise to weaken the currency.

The euro slipped 1.4% to $ 1.3904 at 2:19 pm in New York, the biggest decline since Aug. 10. It earlier fell to $ 1.3886, at least since July 12. The single currency fell 1% to 107.77 yen. The dollar rose 0.3% to 77.51 yen.

Dollar Index rose 0.9% to 76.179. Standard & Poor's Index dropped 0.7% after the biggest daily rise since August 23 yesterday. (JWN)

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