UPDATES ON SEPT 12 2008

SEPT 12 FRIDAY

Euro Trades Near One-Year Low on Speculation Production Shrank .

The euro traded near a one-year low against the dollar on

speculation that a government report will show today industrial

production in Europe shrank, backing the case for the region's

central bank to cut interest rates.

The currency is headed for a third weekly loss as traders

increased bets that the European Central Bank will lower

borrowing costs to support economic growth. The yen was

near a two-year high against the euro on concern that

Lehman Brothers Holdings Inc. may collapse, prompting

sales of higher-yielding assets funded with cheap loans

in Japan.

The euro traded at $1.4003 at 11:35 a.m. in Tokyo after reaching

$1.3882 yesterday, the weakest level since Sept. 18, 2007. It has

fallen 1.9 percent this week. The yen bought 150.15 per euro from

149.98 yesterday, when it touched 147.54, the strongest in more

than two years. It rose 2.4 percent versus the euro this week.

The U.S. currency traded at 107.19 yen from 107.17 yen, and

was set for a 0.5 percent decline this week.

The dollar has gained 12.7 percent since touching the all- time low

of $1.6038 per euro on July 15 as the European economy slumped

and crude oil dropped more than 30 percent to $101.50 a barrel

from its peak of $147.27.

Gains in the dollar may be limited by speculation a Commerce

Department report may show today that U.S. retail sales fell in

August for the first time in six months, adding to signs the

world's largest economy is slowing.