Dollar continues to sink

Bernanke's plan to destroy the dollar is still on track. Where are you Ron Paul? We need you now.

Feb. 2 (Bloomberg) -- The dollar fell for a second straight week against the euro after the Federal Reserve lowered its benchmark lending rate by a half-percentage point to 3 percent and indicated further cuts in borrowing costs may be needed.

The dollar pared its weekly loss yesterday as an expansion in manufacturing offset the first U.S. decline in jobs in four years and traders balked at bidding the euro above the all-time high. The European Central Bank is forecast to hold its main refinancing rate at a six-year high of 4 percent next week, maintaining the advantage over the Fed's target.

``It looks like the U.S. economy will be slowing at a faster pace than other global economies, clearly dollar- negative,'' said Michael Woolfolk, senior currency strategist at the Bank of New York Mellon in New York.

The dollar dropped 0.8 percent to $1.4802 per euro this week, from $1.4681 on Jan. 25. The U.S. currency came yesterday within a half-cent of the November low of $1.4967 per euro, the weakest level since Europe's currency debuted in 1999. Against the yen, the dollar fell 0.2 percent to 106.49, from 106.72. The euro increased 0.6 percent to 157.67 yen, from 156.68.