FX Week

Dollar freefalls in holiday trading

Security concerns and the first case of BSE seen in the US have only added to the list of difficulties facing the US and make the dollar’s decline still more likely.

"The dollar appears to be flirting dangerously on the periphery of a downward spiral," said Neil Mellor, currency strategist at Bank of New York in London. "One is hard pressed to ascribe any positive attributes to the increasingly besieged dollar."

The dollar’s dive through the key 1.2550 per euro level on December 30 came despit