Euro hits new record against dollar
Friday, 21 September 2007
LONDON, Sept 20 (AFP): The euro today hit a new record of 1.4006 dollars as US interest rate cuts took a new toll on the American currency.
Markets are also nervously awaiting statements on the American economy by US officials later in the day.
The euro has hit new highs regularly since the rate cut Tuesday. It rose to 1.3988 dollars during Wednesday's trading in Europe before falling back to 1.3949 dollars.
In Asian trade, the dollar remained under pressure Thursday as market players took to the sidelines ahead of Congressional testimonies by top US finance officials, analysts said.
The dollar slipped to 115.82 yen in Tokyo afternoon trade, down from 116.07 in New York late Wednesday.
The euro firmed to 1.3976 dollars from 1.3957 dollars. The single European unit touched its record high level of 1.3988 dollars briefly late Wednesday in the wake of the Federal Reserve's hefty half-point interest rate cut.
The euro eased to 161.85 yen against 162.04 yen in New York.
Currency markets were subdued ahead of Congressional testimonies due later Thursday by Federal Reserve chairman Ben Bernanke and Treasury Secretary Henry Paulson.
"After digesting big events, the market is now finding it difficult to move," said Nobuaki Tani, currency analyst at Resona Bank in Tokyo, referring to the US rate cut and the Bank of Japan's decision to hold rates steady.
A survey showing US consumer prices fell by 0.1 per cent in August fuelled speculation that further US interest rate cuts could be in the pipeline.
Currency markets will be paying close attention to remarks from Bernanke and Paulson, as well as quarterly earnings results from major US investment banks, dealers said.
While the Fed rate cut helped ease uncertainty in financial markets, "it also narrows interest rate differentials between the US and other currencies," which could stem further dollar gains, Chuo Mitsui Trust and Banking forex dealer Yosuke Hosokawa said.
"And as the market expects more rate cuts in the United States, the stable stock market there may not provide more impetus to buy the dollar," he said.
Against other Asian units, the dollar fell to 1.5058 Singapore dollars from 1.5076 a day earlier, to 923.10 South Korean won from 926.65 and to 9,180 Indonesian rupiah from 9,259.
It also fell to 45.40 Philippine pesos from 45.58, to 31.70 Thai baht from 31.86 and to 33.08 Thai baht from 33.11.
Markets are also nervously awaiting statements on the American economy by US officials later in the day.
The euro has hit new highs regularly since the rate cut Tuesday. It rose to 1.3988 dollars during Wednesday's trading in Europe before falling back to 1.3949 dollars.
In Asian trade, the dollar remained under pressure Thursday as market players took to the sidelines ahead of Congressional testimonies by top US finance officials, analysts said.
The dollar slipped to 115.82 yen in Tokyo afternoon trade, down from 116.07 in New York late Wednesday.
The euro firmed to 1.3976 dollars from 1.3957 dollars. The single European unit touched its record high level of 1.3988 dollars briefly late Wednesday in the wake of the Federal Reserve's hefty half-point interest rate cut.
The euro eased to 161.85 yen against 162.04 yen in New York.
Currency markets were subdued ahead of Congressional testimonies due later Thursday by Federal Reserve chairman Ben Bernanke and Treasury Secretary Henry Paulson.
"After digesting big events, the market is now finding it difficult to move," said Nobuaki Tani, currency analyst at Resona Bank in Tokyo, referring to the US rate cut and the Bank of Japan's decision to hold rates steady.
A survey showing US consumer prices fell by 0.1 per cent in August fuelled speculation that further US interest rate cuts could be in the pipeline.
Currency markets will be paying close attention to remarks from Bernanke and Paulson, as well as quarterly earnings results from major US investment banks, dealers said.
While the Fed rate cut helped ease uncertainty in financial markets, "it also narrows interest rate differentials between the US and other currencies," which could stem further dollar gains, Chuo Mitsui Trust and Banking forex dealer Yosuke Hosokawa said.
"And as the market expects more rate cuts in the United States, the stable stock market there may not provide more impetus to buy the dollar," he said.
Against other Asian units, the dollar fell to 1.5058 Singapore dollars from 1.5076 a day earlier, to 923.10 South Korean won from 926.65 and to 9,180 Indonesian rupiah from 9,259.
It also fell to 45.40 Philippine pesos from 45.58, to 31.70 Thai baht from 31.86 and to 33.08 Thai baht from 33.11.