The euro surged to a record 1.6002 dollars here Tuesday after weak US housing market data added to fears over the health of the US economy.
Sales of existing US homes fell two percent in March, underscoring the continuing slump in the property market sparked by the US subprime home loan crisis.
The National Association of Realtors said the annualized sales pace was 4.93 million, weaker than the 4.95 million expected by Wall Street economists. Sales resumed their decline after a slight uptick in February.
The report also showed a 19.3-percent plunge year-over-year in existing home sales, the largest segment of the housing market.
This reflects a meltdown in the property market after years of sizzling growth and a speculative bubble. The boom-and-bust has slammed the entire economy and led to rising foreclosures and massive losses for banks.
The median existing-home price for all housing types was 200,700 dollars in March, down 7.7 percent from a year ago.
The association said existing home sales have been uneven with the steepest declines in high-cost areas, providing "a downward pull to the national median" price.
Lawrence Yun, NAR chief economist, said the problems in the banking sector are also having an effect on the market.
"Though mortgage rates are at historically low levels, some borrowers are facing restrictive lending practices in declining markets," he said.
"At the same time, many buyers continue to bide their time with a large number of homes to choose from, while other potential buyers remain on the sidelines."
In another sign of the troubles for housing, inventory rose 1.0 percent at the end of March.
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