KEY POINTS:
The US dollar fell across the board yesterday as data showing a 9 per cent decline in sales of new American homes last month heightened concern about the economy, putting the greenback on track for its worst week in more than a year.
The housing report, which was weaker than economists had expected, also bolstered the case for more Federal Reserve interest rate cuts next year.
Earlier last week, the S&P/Case-Shiller index showed a record decline in US home prices in October.
"Certainly, the focus in the first quarter will be how far [home] prices fall and what action the Fed takes to counter the fall," said Greg Salvaggio, a senior currency strategist at Tempus Consulting in Washington, DC.
"Markets are already thin for the holidays and, on top of that, people really don't want to be holding the dollar right now."
