Source AP ©

Euro slips against US dollar after 3 trading days of record highs

The euro took a break from its run of new records against the U.S. dollar on Tuesday, slipping slightly after hitting new all-time highs on three consecutive trading days.

The 13-nation euro bought US$1.4074 in morning European trading - below the US$1.4087 it bought late Monday in New York and well short of its record high of US$1.4130, reached earlier on Monday.

The dollar has been dragged down by the U.S. Federal Reserve's decision last week to cut interest rates by a half percentage point to 4.75 percent in response to market turbulence in the fallout from the subprime mortgage crisis.

Investors this week will be looking for signs that U.S. inflation is under control. The market is also hoping that readings this week on U.S. durable goods demand, the housing market and consumer spending power will show that the economy isn't heading for recession.

Many analysts see more U.S. rate cuts ahead, which could further weaken the U.S. currency, as investments denominated in dollars become less attractive.

In other trading Tuesday, the British pound fell to US$2.0099 from US$2.0214.

The dollar slipped to 114.66 yen from 114.88 yen after Yasuo Fukuda, a quiet compromiser who has promised to bring stability and moderation to Japan's tumultuous political scene, was elected prime minister.

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