kennyboymarketdepressed, dont bite tongue to commit suicide:Euro Dips Below $1.20 Mark in Europe
By THE ASSOCIATED PRESS
Published: October 24, 2005
Filed at 10:34 a.m. ET
BERLIN (AP) -- The euro dipped below $1.20 in European trading Monday, as forecasts of slower growth in Germany dimmed hopes that the European Central Bank would alter its interest rates.
''Many felt doubtful about the ECB rate-hike speculation from the start, so it's fading quickly,'' said Tetsu Aikawa, vice president of UFJ Bank's derivatives and foreign exchange marketing department.
The 12-nation euro bought $1.1964 in afternoon trading, down from $1.2092 in New York late Friday.
The British pound strengthened against the dollar, buying $1.7665, up from $1.7645. The dollar edged down against the Japanese currency, buying 115.37 yen compared to 115.92 yen on Friday.
After weak consumer spending and high oil prices caused Germany's leading research institutes, and its outgoing government, to lower growth forecasts for this year and next to 0.8 and 1.2 percent, there was concern among traders that it could force the ECB to keep interest rates unchanged at 2 percent well in to 2006.
In London, British Prime Minister Tony Blair warned Monday that European nations must form a cohesive financing plan among the 25 EU members to make it more competitive with China and India.
EU leaders are set to meet Thursday to discuss it, among other things, even though the 25-member bloc is split among deregulation and protecting entrenched labor and social programs.
Also Tuesday, the closely watched German Ifo business confidence survey is to be released, which could affect the euro.
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