Dollar falls to fresh low in London

The dollar fell to fresh record lows against the euro and a basket of currencies on Friday as investors, faced with a run of weak US economic data, anticipated a Federal Reserve interest rate cut next week.
US crude oil's rise to record highs above $92 a barrel and gold's climb to 28-year peaks also hurt the dollar, boosting the currencies of commodity-rich countries such as the Australian dollar, which hit a 23-year high against the greenback.
The Aussie was also helped by expectations that the Reserve Bank of Australia will raise rates next month. In contrast, weak US durables goods data on Thursday reinforced bets for a growth-boosting Fed cut on October 31 from 4.75 percent.
The euro had risen as high as $1.4377, the highest since its 1999 launch, according to Reuters data. By 1034 GMT, it had trimmed gains slightly to trade at $1.4364.
Eurogroup Chairman Jean-Claude Juncker said in a newspaper interview published on Friday that he preferred a strong euro to a weak one, adding that the European currency was not yet at alarm-causing levels. Eurozone money supply annual growth for September came in at 11.3 percent, a slightly slower rate of growth than for August but still well over the ECB's 4.5 percent target.
Analysts said this would add to the European Central Bank's dilemma over the next move for eurozone interest rates. "There is bound to be a big split in ECB ranks now. (The M3 data) will add to hawks' campaign for higher rates but the hawks should be looking to weaker growth momentum as the more important driving force for next year," said Bear Stearns in a client note.
The dollar index - which tracks its progress against six major currencies - fell to 77.035, the lowest since its post-Bretton Woods inception over 30 years ago. The Aussie climbed as high as US $0.9144, while the New Zealand dollar was up a third of a percent at US $0.7648.
The rise in high-yielding commodity currencies, coupled with gains in Asian equity markets, helped boost risk appetite and encourage investors to put on carry trade bets funded by cheap borrowing in the Japanese yen.
The yen fell 0.2 percent to 114.37 per dollar and half a percent to 164.33 per euro. The yen reacted little to data showing Japanese core consumer prices fell 0.1 percent in September as expected, an eighth straight month of annual decline.