UPDATES ON AUG 8 2008

AUG 8 FRIDAY

Euro Slumps to Five-Month Low on Reduced Bets for Higher Rates .


The euro slumped to a five-month low against the dollar as traders

pared bets that the European Central Bank will raise interest

rates due to a slowing economy.

The euro also fell to a three-week low versus Japan's currency

after ECB President Jean-Claude Trichet said economic growth

will be ``particularly weak'' through the third quarter.

The dollar headed for its biggest weekly gain against the yen in

almost two months as oil dropped 18 percent from a record.

The euro fell to $1.5195, the lowest since March 5, before trading

at $1.5216 at 12:37 p.m. in Tokyo, from $1.5325 late yesterday

in New York. It's set for a fourth weekly decline, the worst losing

streak since May 2007. The euro weakened to 166.92 yen from

167.70 yesterday and 167.55 at the end of last week. It reached

166.55 yen, the lowest since July 17.

The dollar traded at 109.70 yen, from 109.44 late yesterday

and up 1.8 percent from the end of last week. The U.S. currency

reached a seven-month high of 109.88 yen on Aug. 6.

The dollar traded near a seven-month high against the yen as oil

prices declined during the past week to trade at $119.80 a barrel,

on course for a 4.2 percent loss this week and compared with

the record $147.27 set on July 11.