Sunday, February 29, 2004
FOREX-Dollar bounces, aided by politicians' euro worries
The dollar rose to a three-week high on the euro and a near-three-month high against the yen on Thursday, boosted by euro zone politicians' concern over euro strength and speculation about intervention to cap its gains.
Investors grew wary of buying euros following comments by German Chancellor Gerhard Schroeder on Wednesday which pressured the ECB to cut rates to help Europe's exporters and after a media report that the ECB and the Bank of Japan were ready to intervene to slow the euro's rise if it topped $1.35.
French Prime Minister Jean-Pierre Raffarin said on Thursday he shared Schroeder's view on European interest rates, and that FX rates were not in line with economic reality.
The dollar rose to a three-week high on the euro and a near-three-month high against the yen on Thursday, boosted by euro zone politicians' concern over euro strength and speculation about intervention to cap its gains.
Investors grew wary of buying euros following comments by German Chancellor Gerhard Schroeder on Wednesday which pressured the ECB to cut rates to help Europe's exporters and after a media report that the ECB and the Bank of Japan were ready to intervene to slow the euro's rise if it topped $1.35.
French Prime Minister Jean-Pierre Raffarin said on Thursday he shared Schroeder's view on European interest rates, and that FX rates were not in line with economic reality.
