Dollar Slips to $1.41 per Euro on Economy, Higher-Yield Demand

By Oliver Biggadike and Anna Rascouet

May 29 (Bloomberg) -- The dollar declined beyond $1.41 against the euro for the first time this year as evidence the global recession is easing sent investors in search of assets with higher returns.

The U.S. currency also posted its biggest monthly drop versus the euro in 2009 and fell today against major counterparts including the Australian and New Zealand dollars as South Korea said its state pension fund plans to hold fewer Treasuries. The U.S. securities were poised for a second month of declines on concern debt sales will overwhelm demand.

“It’s a fundamental dollar-down trade,â€