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US Dollar Hits Another Record Low

The U.S. dollar dropped to another record low compared to the euro on Tuesday.

At one point, it took more than $1.31 to buy each euro.

The latest record-low for the dollar follows speculation that Russia may increase the number of euros it holds in foreign currency reserves.

Analysts say the American currency is declining largely because of concern over the huge U.S. trade deficit.

The weak dollar makes U.S.-made exports more competitive on world markets. It also makes French wines, German cars and other goods imported to the U.S. market more expensive for U.S. consumers.

Economists say the dollar's decline will help close the gap between what U.S. companies sell abroad and what U.S. consumers buy from foreign companies.

Some information provided by AFP and Bloomberg.