_____________________Ailing dollar plunges to new low against euro
TOKYO (AFP) —
The dollar plunged to a new record low against the euro and stayed at a 12-year low against the yen in early Asian trading on Monday amid deepening worries over the US economy, traders said.
The euro hit 1.5737-40 dollars in early trading shortly after 7:00 am (2200 GMT), the highest level since it was created in 1999, before easing to 1.5687 dollars later.
The dollar also fell to 98.02 yen in early trading, down from 99.18 yen in New York. It was trading at 99.01 yen in Tokyo Monday morning.
The dollar fell as worries over the US economy have deepened, said Kenichi Yumoto, vice president at the foreign exchange sales and trading department of Societe Generale in Tokyo.
"It's all about Bear Stearns," he said, referring to news Friday of an emergency loan to prop up the crisis-hit Wall Street investment bank.
The fact that US regulators intervened to drag the bank from the brink of collapse highlighted worries over the health of US financial companies, he said.
Company officials said Sunday Bear Stearns would be bought by J.P. Morgan Chase for two dollars a share.
But Yumoto said the dollar's renewed plunge may come to a halt in Asia after a new round of selling runs its course.