Today U.S. Dollar Strongest against the Euro in 2008

With the European Central Bank cutting its outlook for growth for the European Union, it suggests there will probably be interest rate cuts soon, which rallied the U.S. dollar to its highest level against the euro this year.

According to the a statement by the chairman of euro zone finance ministers, Jean-Claude Juncker, the euro is still overvalued even though it has fallen recently. That also contributed to the weakening against the dollar.

ECB president Jean-Claude Trichet added that while the lending remains at 4.25 percent, inflation is still high and he views risk to the upside.

Growth for the 15-nation region is projected to grow at about a 1.1 to 1.7 percent rate, says the ECB. For 2009 growth is expected to be between 0.6 percent and 1.8 percent.

The euro fell as low as $1.4321 agaisnt the U.S. dollar, and was at $1.4332 late in the trading day. That's the lowest since December 2007.

Against the yen the dollar fell 1.1 pecent to 107.12.