Dollar hits new low but exporters happy

NEW YORK, Dec. 23 (UPI) -- The U.S. dollar sank to a new low against the euro Thursday on renewed concerns about U.S. trade and budget deficits.

The euro breached the $1.35 mark before easing to $1.3486 and then rising to $1.351 just after 4 p.m. The dollar fell to 103.7 against the Japanese yen, down 0.5 percent on the day.

As recently as September, the U.S. dollar had traded at about $1.20 against the Euro.

In France, Finance Minister Herve Gaymard said the world faces "economic catastrophe" unless the United States works with Europe and Asia on currency controls, the BBC reported.

The warning comes as the increase in the value of the euro has begun to hurt European exports, while benefiting U.S. exporters.

Thursday's response came after it was disclosed sales of new homes fell 12 percent in November. Separately, the U.S. Commerce Department said consumer spending, which accounts for two thirds of the U.S. GNP, grew an anemic 0.2 percent in November, compared to 0.8 percent in October.