HONG KONG (Thomson Financial) - The US dollar extended losses against the euro and the yen in afternoon trade in Asia on Thursday on speculation the Federal Reserve will lower interest rates further in the first quarter of 2008. 'Generally, the dollar is weak. After this week's rate cut, the Fed is not done yet. We are expecting two more rate cuts, one in January and another one in March,' said Philip Wee, a strategist at DBS Bank. 'The housing slump in the US is creating more rate cut expectations.' At 1.00 pm (0500 GMT), the dollar was quoted at 111.83 yen, down form 112.13 in Sydney this morning and from 112.19 in ... (full story)