The USD continued its decline against all major currencies, amidst higher commodity prices and the release of disappointing economic data. Analysts have already started to quantify the economic impact of Hurricane Katrina, with some estimates topping $100 Billion. Insurance payouts, alone, could exceed $25 Billion. If energy prices continue to rise, growth may slow further. Investors have adjusted to the dual prospects of slower growth and constant interest rates by sending the USD to a near 3-month low against the Euro. Technical analysts have noted that the Euro’s sudden appreciation represents a breakout and could ignite a prolonged period of appreciation. The Wall Street Journal reports:

Katrina effects weighing on the dollar included concerns that the Federal Reserve may not push ahead with its measured rate-increase approach in the coming months.

Read More: Dollar Is Driven Broadly Lower By Growing Surplus of Bad News