Dollar Falls Against Euro, Pound And Yen

NEW YORK -- The dollar fell against the euro, pound and yen Wednesday as consumer prices continued to drop, paving the way for more interest-rate cuts at home. Meanwhile, European bankers suggested more rate cuts were in the works as well, and stocks sank.

The 15-nation euro inched up to $1.2602 in late New York trading Wednesday from $1.2579 late Tuesday, coming off an overnight high of $1.2814 as U.S. stocks recoiled. The Dow Jones industrials fell below the 8,000 mark for the first time since 2003.

The British pound rose to $1.5025 from $1.4916, while the dollar slipped to 96.37 Japanese yen from 96.46.

The U.S. Labor Department said Wednesday that its index of consumer prices fell by 1% in October, the largest one-month drop since 1947, when record-keeping began. ...