-- Dollar drops sharply, breaches key levels --
1416 GMT - The dollar loses further ground, falling more
than 1.3 percent on the yen as traders dump losing positions.
- Dollar under pressure across the board, but generally
unperturbed by the morning's U.S. producer price data. U.S.
producer prices fell 0.4 percent versus expectations they would
stay flat and following a 1.1 percent rise in October.
- Market now awaits University of Michigan
preliminary-December consumer sentiment survey. The survey,
due at 0945 EST/1445 GMT, is expected to rise to 85.0 from 84.2
in November.
- Traders say concerns over the U.S. economy, geopolitical
tensions and charts all at play, without any one factor behind
the dollar's recent fall. They said dollar/yen was getting hit
hardest today because many traders were still long dollar/yen,
whereas they were playing short dollars on many of the other
crosses.
- Japan's "tankan" business sentiment survey better than
expected, but not robust enough to change the view that Japan's
economy remains under pressure.
- Euro breaches key high from July, breaking through $1.02
<EUR=> to trade at $1.0234, up 0.46 percent on the day and the
highest since January 2000. $1.03 the next big level.
- Dollar/yen drops more than 1.5 percent to 120.75 yen
<JPY=> after breaching support levels above 121, the lowest
level in more than 3 weeks.
- For full report on major currencies click on [FRX/]
- For previous updates on currency moves click on [USD/]
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13-Dec-2002 14:17:24 GMT
Source RTRS - Reuters News |
