Dollar continues to drop.
FOREX-Euro rallies as economic worries damage dollar
Wed April 16, 2003 08:25 AM ET
(Updates prices, quotes)
By Justyna Pawlak
LONDON, April 16 (Reuters) - The euro gained on the dollar and hit two-month highs versus the yen on Wednesday as economic worries in the United States diminished dollar bulls' hopes for a rally and overshadowed upbeat U.S. corporate results.
Some dollar bulls had hoped that the dollar would rally with the U.S.-led war against Iraq appearing to draw to a conclusion, but persistent concern over the economic health of the United States has kept market sentiment strongly in check.
Analysts said an equities rally in New York, signalled by U.S. futures, was unlikely to change the greenback's fortunes much even as investors seek clues from the corporate earnings releases about the state of the U.S. economy.
"We are seeing some unwinding of expectations of a strong post-war economy. Recent economic data checked optimism about U.S. growth," said Michael Metcalfe, senior strategist at State Street in London.
"The euro is not an economic winner either but at the moment the dollar trend is dominating," he said.
The euro was up a third of a percent since late Tuesday trading against the dollar at $1.0832. Against the yen, it was up 0.40 percent , while the dollar was steady on the Japanese currency at 120.34 .
The dollar was also down nearly half a percent on the Swiss franc , which itself has been suffering recently as investor appetite for risk increases in the wake of last week's fall of Baghdad and an apparent U.S.-UK victory over Iraqi President Saddam Hussein. |
