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Euro stable versus dollar on weak US trade data

The euro stabilised against the dollar on Thursday, with the US currency hurt by news of a record drop in imports in September and persistent fears for the future of the global economy.

In late London trade, the euro traded at 1.2522 dollars from 1.2505 dollars late in New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 on Wednesday.

French President Nicolas Sarkozy said ahead of a weekend summit on the global financial crisis that the dollar can no longer claim to be the sole world currency.

"I leave for Washington tomorrow to explain that the dollar, which at the end of World War II End of World War II can refer to:
  • End of World War II in Europe
  • End of World War II in Asia
 was the only world currency, can no longer claim to be," Sarkozy said.

The euro's rebound followed a report that while the US trade deficit narrowed in September, imports showed a record slide, with exports also down sharply -- indications that US economic momentum was running out of steam.

The euro rose to 120.07 yen from Wednesday's level of 118.19, but it was kept in check by more gloomy indicators of recession in Europe.

Official figures showed on Thursday that eurozone Eurozone
Noun

same as Euroland

Eurozone neurozona, zona euro

Eurozone nzona euro 
 kingpin Germany plunged into recession for the first time in five years as the global financial crisis hammered the world's third biggest economy.

It was the first major economy to confirm that a long-feared recession had arrived, with France, Italy and the entire 15-nation eurozone expected to follow on Friday.

Dealers were meanwhile awaiting to hear speeches from the head of the European Central Bank European Central Bank (ECB)

Bank created to monitor the monetary policy of the countries that have converted to the Euro from their local currencies. The original 11 countries are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal,
, Jean-Claude Trichet Jean-Claude Trichet (born December 20, 1942) is a banker was born in Lyon, France, trained as an engineer at the École nationale supérieure des Mines de Nancy and later as a civil servant at the Institut d'etudes politiques de Paris (best known as Sciences Po) and the Ecole  and other bank chiefs at a conference of the European Central Bank on Thursday.

"The risk... in our view is that ECB See electronic code book.  speakers sound more dovish, especially given the recent weakness in data, which would weigh further upon the euro," said David Woo at Barclays Capital Barclays Capital is the investment banking division of Barclays plc. It is a primary dealer in U.S. Treasury securities and various European Government bonds.

Barclays Capital is led by CEO Robert (Bob) Diamond, an American who had been vice-chairman of Credit Suisse First
.

After the ECB had last week slashed eurozone interest rates by half a percentage point, Trichet suggested at a press conference that more reductions could be on the way.

Against the Japanese currency meanwhile, the dollar climbed to 95.89 yen from a level of 94.61 yen reached on Wednesday.

The yen gave back some of the previous day's strong gains that were sparked by news Washington is scrapping a plan to buy up toxic mortgage debt.

Market watchers said the yen could turn higher again because of falling stock markets and growing worries about the financial crisis. The yen tends to benefit from market turmoil because it is often sold to fund risky bets, and is seen as a relatively safe haven 1. Designated area(s) to which noncombatants of the United States Government's responsibility and commercial vehicles and materiel may be evacuated during a domestic or other valid emergency.
2.
 investment.

The British pound meanwhile suffered more against the euro, hitting 1.1824 euros, a low point not seen since 1992, according to Lee Hardman of Bank of Tokyo-Mitsubishi. Sterling sank to a six-year low of 1.4807 dollars.

The euro changed hands at 1.2522 dollars against the level of 1.2505 dollars reached late on Wednesday, at 120.07 yen (118.19), 0.8458 pounds (0.8350) and 1.5016 Swiss francs (1.4825).

The dollar stood at 95.89 yen (94.61) and 1.1991 Swiss francs (1.1864).

The pound was at 1.4804 dollars (1.4955).

On the London Bullion Market The London bullion market, is entirely different from, but often confused with the London Metal Exchange. Only base metals are traded at the London Metal Exchange (LME), while gold and silver are traded by members of the London Bullion Market Association (LBMA), loosely overseen by , the price of gold fell to 713.50 dollars an ounce from 724.75 dollars late on Wednesday.
Copyright 2008 AFP Global Edition
No portion of this article can be reproduced without the express written permission from the copyright holder.
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Author:AFP
Publication:AFP Global Edition
Date:Nov 13, 2008
Words:520
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