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Dollar Falls to Another Record Low Against Euro

The U.S. dollar has fallen to another record low against the Euro.

The Euro rose to $1.37 in New York trading Thursday, after a report showed manufacturing slowing down in the Chicago area, one of the nation's economic centers. The European currency first rose above $1.36 on Monday.

Many economists predict the dollar will continue to fall in 2005.

Several European finance ministers have blamed the drop on the large U.S. large trade and budget deficits. A weak dollar makes U.S. exports cheaper on world markets, but hurts European traders.

It also attracts Europeans to U.S. cities and stores.

The Bush administration says it is committed to a strong dollar. But it has taken no direct action, saying markets should determine exchange rates.

Some information for this story provided by AP and AFP.