Dollar slips against euro
Tuesday, 25 September 2007
SINGAPORE, Sept 24 (AFP): The dollar slipped against the euro in Asian trading today as investors continued to fret over the state of the US economy, dealers said.
There were still lingering concerns that a robust 50 basis points cut in US interest rates last week might be insufficient to avert a sharp slowdown in the world's biggest economy, they added.
At 1:30 pm (0530 GMT), the euro was trading at 1.4099 dollars in Singapore from 1.4090 in late US trades Friday. Markets in Japan were closed for a public holiday and will open again Tuesday.
Against the yen, the dollar was at 115.02 compared with 115.35 late Friday in US trading.
"The euro-dollar continues to strengthen," economists from Singapore's United Overseas Bank said in a report.
Given the prevailing mood at the moment, there was every chance the dollar could fall to 1.44 against the euro over the next two months, said a foreign currency trader from a European bank who did not want to be named.
"I think it's broad-base dollar weakness," he said.
The dollar stumbled to a record low of 1.4120 against the euro last week after the US Federal Reserve's move to cut interest rates by a bigger-than- expected 50 basis points.
"The euro did exactly what we spelt out in our latest quarterly ... it reprised its role as the anti-US dollar," Singapore's DBS Bank said in a report.
Against other Asian units, the dollar rose to 1.5046 Singapore dollars from 1.5033 on Friday and to 921.05 South Korean won from 921.00.
It fell to 32.95 Taiwan dollars from 33.04, to 9,130 Indonesian rupiah from 9,185, to 45.17 Philippine pesos from 45.44 and to 31.89 Thai baht from 34.21.
There were still lingering concerns that a robust 50 basis points cut in US interest rates last week might be insufficient to avert a sharp slowdown in the world's biggest economy, they added.
At 1:30 pm (0530 GMT), the euro was trading at 1.4099 dollars in Singapore from 1.4090 in late US trades Friday. Markets in Japan were closed for a public holiday and will open again Tuesday.
Against the yen, the dollar was at 115.02 compared with 115.35 late Friday in US trading.
"The euro-dollar continues to strengthen," economists from Singapore's United Overseas Bank said in a report.
Given the prevailing mood at the moment, there was every chance the dollar could fall to 1.44 against the euro over the next two months, said a foreign currency trader from a European bank who did not want to be named.
"I think it's broad-base dollar weakness," he said.
The dollar stumbled to a record low of 1.4120 against the euro last week after the US Federal Reserve's move to cut interest rates by a bigger-than- expected 50 basis points.
"The euro did exactly what we spelt out in our latest quarterly ... it reprised its role as the anti-US dollar," Singapore's DBS Bank said in a report.
Against other Asian units, the dollar rose to 1.5046 Singapore dollars from 1.5033 on Friday and to 921.05 South Korean won from 921.00.
It fell to 32.95 Taiwan dollars from 33.04, to 9,130 Indonesian rupiah from 9,185, to 45.17 Philippine pesos from 45.44 and to 31.89 Thai baht from 34.21.