Euro firm after modest dollar gains

Published December 13, 2007

LONDON, Dec 12: The dollar got a modest boost on Wednesday from central bank action to ease the global credit crunch but then slipped back against the euro as markets concentrated on interest rates, dealers said.

They said there was widespread disappointment at Tuesday’s quarter point cut in US interest rates to 4.25 per cent which produced a sharp setback for stock markets and put the dollar under fresh pressure.

Then news in mid-afternoon European trade that the US Federal Reserve, the European Central Bank and their counterparts in Britain, Canada and Switzerland would coordinate efforts to boost liquidity helped stocks to rally back and this in turn helped the dollar for a while.

However, the prospect that US interest rates might fall further while eurozone rates are on hold or even increased, once again worked against the dollar which was also hit by news of a another large US trade deficit.

In late European deals, the euro was quoted at 1.4687 dollars, up from 1.4685 dollars earlier and 1.4655 dollars in New York late on Tuesday.

In European trade, the euro changed hands at 165.04 yen, up sharply from Tuesday’s late 162.17, 0.7176 pounds (0.7201) and 1.6697 Swiss francs (1.6570).

The dollar stood at 112.36 yen (110.64) and 1.1369 Swiss francs (1.1306).—AFP

Opinion

Editorial

Anti-women state
Updated 25 Nov, 2024

Anti-women state

GLOBALLY, women are tormented by the worst tools of exploitation: rape, sexual abuse, GBV, IPV, and more are among...
IT sector concerns
25 Nov, 2024

IT sector concerns

PRIME Minister Shehbaz Sharif’s ambitious plan to increase Pakistan’s IT exports from $3.2bn to $25bn in the ...
Israel’s war crimes
25 Nov, 2024

Israel’s war crimes

WHILE some powerful states are shielding Israel from censure, the court of global opinion is quite clear: there is...
Short-changed?
Updated 24 Nov, 2024

Short-changed?

As nations continue to argue, the international community must recognise that climate finance is not merely about numbers.
Overblown ‘threat’
24 Nov, 2024

Overblown ‘threat’

ON the eve of the PTI’s ‘do or die’ protest in the federal capital, there seemed to be little evidence of the...
Exclusive politics
24 Nov, 2024

Exclusive politics

THERE has been a gradual erasure of the voices of most marginalised groups from Pakistan’s mainstream political...