Dollar Paradox As Stock Surges Push Euro Lower

NEWS

LONDON--Surges in the world’s stock markets over the past fortnight are pushing the euro down to record lows, highlighting the unusual relationship that now exists between the EU bloc and the dollar.

"The stock market shudders this past week have highlighted the paradox of the dollar in the foreign exchange markets," says Ian Stannard, an economist at Chase Manhattan.

"The slide in US stocks has pulled speculative flows out of buying dollar assets while the fears of a collapse have triggered