March 27, 2007	Tuesday	Rabi-ul-Awwal 7, 1428

LONDON, March 26: The dollar fell to its lowest level against the euro in two years on Monday following the release of weaker-than-expected new US homes data. The euro rose to $1.3332 in late European trading, from $1.3282 late in New York on Friday.

The dollar fell to 117.84 yen from 118.05 yen late on Friday.

Sales of new US homes fell by 3.9 per cent in February to a seasonally adjusted annual rate of 848,000 units, the lowest level since June 2000, according to figures from the US Commerce Department.The department also said that new home sales had fallen by a revised 15.8 per cent to 882,000 units in January, the sharpest one-month decline since January 1994, when sales plunged by 23.8 per cent.

Economists had expected sales to rebound in February to about 995,000 units. “What's happening now is the market is realising the US housing market isn't so rosy,” said Steve Pearson, currency strategist at HBOS.

The euro was changing hands at $1.3332, against $1.3282 on Friday, 157.12 yen (156.89), 0.6771 pounds (0.6775) and 1.6192 Swiss francs (1.6192).

The dollar stood at 117.82 yen (118.05) and 1.2147 Swiss francs (1.2200).

The pound was being traded at $1.9691 (1.9618).—AFP