Dollar's downward slide continues
	Monday, 27 November 2006 :The dollar has continued its downward slide against the euro, slipping to 20-month lows. The dollar fell to $1.3172 against the euro overnight, before recovering to $1.3121 in mid-morning trade. Calls for "collective vigilance" from France's finance minister, amid fears the fall may drive up European export prices, triggered the improvement. Thierry Breton added that the strong euro would be discussed by European Union finance chiefs later on Monday. Meanwhile, sterling rose to $1.9371 against the dollar, buoyed by strong housing market figures. Economic worries The dollar has taken a hit in recent days as economic data prompted concerns about the health of the US economy. US monetary policy chiefs are widely expected to cut rates in coming months, while growth forecasts have been cut and the country's housing market is suffering from a slowdown. Meanwhile recent figures show that consumer spending growth is expected to slow slightly over the all-important Christmas shopping period. In contrast, data from the eurozone has given a boost to the euro. Recent figures have shown an unexpected rise in German business sentiment and French business confidence is at five-year highs. "This is very much a case of strength in the European currencies," said Teis Knuthsen, Danske Bank foreign exchange chief. I think the European growth outlook has been reassessed following quite strong economic numbers," However, the improvement in the euro's fortunes has prompted concern about exports. Shares in carmakers Peugeot, Renault, BMW and DaimlerChrysler have all been pressured by the news.