Early trade in New York: risk rally hammers dollar, yen hits record high

The US dollar fell broadly on Friday and hit a record low against the yen on hopes Europe was closer to solving its debt crisis and talk the Federal Reserve may take new measures to boost growth. France and Germany said in a joint statement that European leaders would discuss a solution to the crisis on Sunday, but no decisions would be adopted before a second meeting to be held by Wednesday at the latest.
The US dollar has shown a strong inverse relationship with stocks in recent trading. The 25-day correlation between the dollar index and the Standard & Poor's 500 Index hit negative 0.927 on Friday. The euro rose 0.7 percent to $1.3876, having hit $1.3900 on Reuters data and recovering from a low of $1.3703.
The euro dropped 0.3 percent to 105.58 yen. It also slipped 0.3 percent against sterling and lost 0.6 percent versus the Swiss francs. The dollar fell as low as 75.78 yen on trading platform EBS, surpassing its previous record low of 75.941 set in August.