Euro crosses 1.47 dollars after weak US housing data
Sunday, 30 December 2007
NEW YORK, Dec 27 (AFP): The euro crossed 1.47 dollars yesterday amid persistent speculation that poor US economic data could force the Federal Reserve to cut interest rates in 2008, dealers said.
The greenback was also under pressure as traders reacted nervously to the assassination Thursday of Pakistani opposition leader Benazir Bhutto, while activity was muted with many investors away for year-end holidays, dealers said.
The European single currency also hit new record highs against the pound, following a recent string of weak economic data in Britain.
The euro was at 1.4724 dollars around 2200 GMT, up from 1.4622 late Thursday. Earlier it had climbed as high as 1.4727 dollars.
The dollar fell to 112.32 yen from 113.67 late Thursday.
In late New York trade, the dollar was at 1.1263 Swiss francs, down from 1.1392 late Thursday.
The pound was at 1.9960 dollars, up from 1.9954.
The euro was at 0.7375 pounds, up from 0.7326.
The murder of Bhutto Thursday led to a sharp increase in risk aversion, boosting the Swiss franc and the yen.
Add to the mix Friday's weak US data on new home sales and Thursday's disappointing durable goods orders figures and it makes sense that the dollar has suffered as a result, Derrick said.
But he stressed that thin trading conditions ahead of the New Year's holiday Tuesday were causing increased volatility and exaggerated price movements.
US government data released yesterday showed a nine-per cent fall in sales of new homes in the US during November as a result of a lack of mortgage availability and consumer pessimism.
The greenback was also under pressure as traders reacted nervously to the assassination Thursday of Pakistani opposition leader Benazir Bhutto, while activity was muted with many investors away for year-end holidays, dealers said.
The European single currency also hit new record highs against the pound, following a recent string of weak economic data in Britain.
The euro was at 1.4724 dollars around 2200 GMT, up from 1.4622 late Thursday. Earlier it had climbed as high as 1.4727 dollars.
The dollar fell to 112.32 yen from 113.67 late Thursday.
In late New York trade, the dollar was at 1.1263 Swiss francs, down from 1.1392 late Thursday.
The pound was at 1.9960 dollars, up from 1.9954.
The euro was at 0.7375 pounds, up from 0.7326.
The murder of Bhutto Thursday led to a sharp increase in risk aversion, boosting the Swiss franc and the yen.
Add to the mix Friday's weak US data on new home sales and Thursday's disappointing durable goods orders figures and it makes sense that the dollar has suffered as a result, Derrick said.
But he stressed that thin trading conditions ahead of the New Year's holiday Tuesday were causing increased volatility and exaggerated price movements.
US government data released yesterday showed a nine-per cent fall in sales of new homes in the US during November as a result of a lack of mortgage availability and consumer pessimism.