2010.09.3008:39:00UTC+00Drowning Dollar Can't Come Up For Air Thursday Morning

There was no rest for the weary dollar on Thursday, as concerns about the economy and the future monetary policy drove the greenback to a fresh 5-month low against the euro.

A Moody's downgrade of Spanish paper raised fears about the European sovereign debt issue, but failed to give the dollar any meaningful support.

The buck slipped to $1.3675 versus the euro -- its lowest since early April. The buck has dropped almost 20 cents since hitting a 4-year peak near $1.1800 in June.

The markets remain convinced that the Fed is preparing another round of asset purchases to prop up the economy, as the nation's key lending rate is already at a record low near zero.

And with no sign of Japanese officials making a second intervention in the markets, the buck has fallen to within a hair of a 15-year low against the yen reached earlier in September.

The buck continued its downward slide against the swiss franc, hitting a new 2-year low of CHF 0.9707. A move below 0.9645 would take the dollar to a record low against the franc

A full slate of economic news will keep traders on their toes throughout today's session.

The Bureau of Economic Analysis will release its final estimate of second quarter GDP report at 8:30 a.m. ET. Economists expect the GDP growth for the quarter to be left unrevised at 1.6%, reported in the preliminary report.

At the same time, the Labor Department will release its customary weekly jobless claims report for the week ended September 25. Economists expect jobless claims to decline to 457,000 from 465,000 reported for the previous week.

At 9.45 a.m. ET, results of the Institute of Supply Management-Chicago's business survey for September will be released. Economists expect the business barometer index based on the survey to come in at 56, slightly lower than 56.7 reported for August.

Federal Reserve Chairman Ben Bernanke will testify before the Senate Banking Committee along with other regulators in connection with the overhaul of US financial rules.

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