JULY 11 2008

JULY 11 FRIDAY

Dollar Heads for Weekly Loss Versus Euro Before

Confidence Data .

The dollar headed for a weekly loss against the euro on

speculation a report today will show U.S. consumer

confidence fell to a 28-year low, signaling the Federal

Reserve will refrain from raising interest rates this year.

The dollar traded at $1.5772 per euro as of 1:36 p.m. in

Tokyo from $1.5788 in New York yesterday, when it fell

to $1.5801, the weakest since July 3. It ended last week

at $1.5706. The U.S. currency was at 107.18 yen from

107.07 yen yesterday and 106.80 yen a week ago. The

euro traded at 169.05 yen from 169.05 yen yesterday

and 167.73 yen on July 4.

The dollar pared losses after the New York Times reported

U.S. officials are considering plans to take over one or

both of Fannie Mae and Freddie Mac. The government is

discussing placing them in a conservatorship, under which

their losses would be covered by taxpayers, the Times said,

citing unidentified officials briefed on the matter.


Crude oil traded near $142 a barrel after rising 4.6 percent


yesterday, the biggest gain since June 6, as Iran test- fired

more missiles in the Persian Gulf.

The euro-dollar exchange rate and oil have moved in the

same direction 90 percent of the time during the past year,

according to Bloomberg calculations based on the correlation

of their value changes.