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10/25/2004:

"Dollar claws back losses on profit-taking"

By Steve Johnson in London

The US dollar sank to new lows on Monday as worries over twin deficits, oil prices and a cliffhanger of an election were augmented by the breaching of key technical levels.

However, in a veritable game of two halves, a bout of profit-taking allowed the greenback to erase most of the day's losses.

While few observers believed that the bounceback meant the dollar had bottomed, some were cautious about the likely pace of the greenback's decline. According to ABN Amro's in-house data, long euro/dollar positions had risen to 90 per cent of their year highs, with Canadian/US longs at a 12-month high, limiting the potential for further short-term dollar losses.

Full Article : news.ft.com