UPDATES ON JUNE 18 2008

JUNE 18 WEDNESDAY

Dollar Trades Near One-Week Low; Traders Trim Bets on Rate Rise

The dollar traded near a one-week low against the euro

as investors bet the Federal Reserve will keep interest rates

unchanged next week and the European Central Bank will

increase borrowing costs next month.

The U.S. currency was also near its lowest in a week

against the yen after reports in the U.S. yesterday

showed housing starts fell in May to a 17-year low and

industrial production unexpectedly declined. The British

pound fell before the release today of minutes from the

most recent Bank of England meeting.

The dollar traded at $1.5482 per euro as of 7:20 a.m.

in London from $1.5511 late yesterday, when it fell to a

one-week low of $1.5552. The U.S. currency was little

changed at 108.07 yen, near a one-week low of 107.54

yen and down from a four- month high of 108.58 set

June 16. The yen was at 167.33 per euro. It touched

167.84 yesterday, the weakest since July.

The dollar may fall to $1.5550 per euro and 107.60

yen today, Soma forecast.