Dollar Slumps; Euro Hits Record High

This is not good for the United States economy.

"The euro climbed to an all-time high against the dollar Friday as weak U.S. growth figures reinforced fears of a widening economic disparity between Europe and the United States.

A higher euro makes goods from the euro-zone more expensive for customers abroad, or cuts into manufacturers' profits if they try to keep the U.S. dollar price of products constant.

Along with the rise in the British pound, which broke through $2 earlier this month for the first time in nearly 15 years, the stronger euro makes visits to much of Europe more expensive for travelers from elsewhere and makes shopping trips to the U.S. more appealing to Europeans.

The reading of U.S. gross domestic product, considered the best barometer of the country's economic fitness, was the weakest since a 1.2 percent pace registered in the opening quarter of 2003. It underscored just how much momentum the U.S. economy has been losing as it copes with the strain of the troubled housing market.

The dollar's woes aren't confined to Europe: It is at a 17-year low against the Australian dollar, hovering near 26-year lows against the British pound and at an all-time low against the Chinese yuan."