Boost for Britons in US as dollar slides further

Britons flying to America for the Christmas holidays received a boost as the dollar slumped to fresh record lows.

Concerns about the health of the US economy sent the dollar tumbling to an all-time trough of $1.3518 against the euro. Against the pound, tourists are being offered a rate of about $1.84 - the highest since 1992, when Britain was ejected from the European exchange rate mechanism.

The catalyst for the latest slide was news that sales of US new homes dived 12 per cent last month. It comes amid lingering worries about America's yawning budget and trade deficits.

European policymakers warn the dollar's decline is making European exports unattractive to US buyers. France's finance minister said the world faces "economic catastrophe" unless the US works with Europe and Asia on currency movements.