Dollar tumbles to record low vs. euro
Weak reading on economic growth pushes dollar to an all-time record low against the European currency.
NEW YORK (CNNMoney.com) -- The dollar tumbled to a record low against the euro Friday after a weak reading on economic growth in the United States unnerved currency investors.
The euro bought $1.3682, the highest since the currency was launched eight years ago. The European currency pared some of those gains and was last trading at $1.3641, up from $1.3604 late Thursday.
The dollar was little changed against the yen. The greenback bought ¥119.58, versus ¥119.54 the previous session.
A weaker-than-expected reading on U.S. economic growth hurt the dollar, as investors bet money would be moving out of the United States to areas with higher growth.
Bond prices rose initially but then fell back and were little changed late in the afternoon.
The Commerce Department said gross domestic product grew at an annual rate of 1.3 percent in the first quarter, down from 2.5 percent the previous quarter. It was the weakest pace of growth in four years.
Gross domestic product is the broadest measure of the nation's economic activity. Economists surveyed by Briefing.com had expected growth to ease to 1.8 percent during the quarter.
Bond prices were little changed, with the benchmark 10-year note essentially flat, yielding 4.70 percent, versus 4.69 percent in the previous session.
The 30-year lost 1/32, or 31 cents for every $1,000 invested, to yield 4.89 percent, up from 4.87 percent late Thursday.
Bond yields and prices move in opposite directions.
The five-year gained one tick to yield 4.60 percent, while the two-year note held steady to yield 4.68 percent.