The US dollar surged to a 15-month high against a basket of other major currencies on Friday as plunging stocks and persistently tight credit markets prompted investors to scramble for cash in the world's reserve currency. The euro fell 1.5 percent against the dollar at $1.3399 after touching an 18-1/2-month low. The euro has lost 7.8 percent against the dollar in two weeks, the worst two-week period since its introduction at the start of 1999. The euro last traded down 0.4 percent to 134.57 yen, after hitting a three-year trough of 132.26 yen. The higher-yielding Australian dollar fell 5 percent to US$0.6484, while the New Zealand dollar dropped 1.1 percent to US$0.5987. The US dollar traded up 1 percent at 100.41 yen, coming off its worst level since March, according to Reuters data. Meanwhile, the Indian rupee recovered in late Friday trade to 48.72 against the dollar, but still at five-year lows. Gold dropped as much as 9.6 percent on Friday. Gold traded in a wide range of more than $100 an ounce on Friday, capping a volatile week with gains of only 1.3 percent even as global stock markets lost heavily. Bullion in overnight trade touched a 2
