April 23, 2008	Wednesday	Rabi-us-Sani 16, 1429

LONDON, April 22: The dollar plunged to a record low on Tuesday against the euro, which broke through the $1.60-barrier, as the unit was hit by dismal US housing news and fresh fears over the health of the US economy.The single European currency jumped at one point to $1.6019, the highest reading since its creation in 1999.The euro was later trading at $1.5996 against $1.5912 late Monday in New York.

The dollar was at 102.81 yen after 103.19 yen on Monday.

The US currency fell after a report showed that sales of existing US homes fell 2.0 per cent in March, underscoring the extended slump in the housing market in the fallout from the subprime home loan crisis.

The National Association of Realtors said the annualised sales pace was 4.93 million, weaker than the 4.95 million expected by Wall Street economists.

The report also showed a 19.3pc plunge in existing home sales, the largest segment of the housing market.The data reflected a meltdown in the property market after years of sizzling growth and a speculative bubble.

The boom-and-bust has slammed the entire economy, leading to rising foreclosures and massive losses for banks and threatening to drive the US economy, the world’s largest, into recession this year.

Also weighing on the dollar was a comment from the head of the French central bank, Christian Noyer, highlighting the interest rate differential between the United States and the eurozone.—AFP