Dollar is slightly higher than its all-time low of $1.3074, a record set last Thursday. Yesterday euro was at $1.3045 in the afternoon trading. Traders explained the temporary stabilization of the exchange rate with “a lack of impetus” as the market paused before Thanksgiving and after aggressive dollar sales that had been going on for a while.

 

The statement released after the G-20 meeting in Berlin rendered little support to the dollar as it did not contain any mention of a coordinated move to stem dollar slide.

 

Most experts blame US budget deficit for a sharp drop in the dollar exchange rate, and US Treasury Secretary John Snow promised to take measures to reduce the red ink in the US budget.

 

Fed chief Alan Greenspan expressed concern that the looming U.S. current account deficit might lower demand for dollar assets from foreign investors.

 

China will not loosen the currency peg between US dollar and renminbi, as it is still in the preparation stage. Zhou Xiaochuan, an official of the People's Bank of China, that it is "still not the stage to talk about a specific technical arrangement" about a revision of the exchange rate that is currently set at 8.3 yuan to the dollar.