Dollar dives but Snow resists prop

THE DOLLAR crashed to fresh record lows against the euro today as US Treasury Secretary John Snow signalled his reluctance to prop up the ailing currency by intervening in foreign exchange markets.

On a visit to London as part of a European tour, Snow said currency values were best determined in open, competitive markets.

'I think the history of efforts to impose non-market valuations on currencies is at best unrewarding and chequered,' he said.

Italy's economy minister Domenico Siniscalco last week claimed that co-ordinated central bank intervention-to boost the dollar was being discussed.

European policymakers are concerned that its rapid slide is making their exports uncompetitive and hampering recovery in the eurozone.

Snow's comments helped drive the dollar to a record low of 1.3047 against the euro and a four-month trough of 1.8628 against sterling. It has shed five US cents against the euro in the past month amid worries about America's ballooning budget and trade deficits.

Snow pledged action to curb the budget deficit but said the trade deficit was a 'shared responsibility'.