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Strategies & Market Trends : Currents of Currency -- Ignore unavailable to you. Want to Upgrade?

To: Ahda who wrote (73)	8/22/2003 4:49:42 AM
From: GUSTAVE JAEGER	Read Replies (1) \| Respond to of 594

Euro's parabolic flight --the latest: Euro's rally is sputtering as U.S. and Asia perk up Liz Alderman/IHT IHT Friday, August 22, 2003 PARIS The euro's rally is turning into a fizzle as investors, sensing a rebound in the United States and Asia, start to bet that the single currency is not the investment it used to be. The euro hit a four-month low against the dollar and the yen on Thursday, battered by growing evidence that the European economy is not keeping up with a global recovery. "For the next few months, the euro is going to be vulnerable," said Holger Schmieding, senior economist at the Bank of America in London. The euro fell to $1.0927 from $1.1118 on Thursday in New York, continuing its slide from a record $1.1933 in late May as Europe's largest economies - including Germany and Italy - headed into a recession. Signs that Japan's long moribund economy is shaking off a recession have also sparked a selloff in the euro against the yen, with the euro closing at ¥103.92 from ¥132.09. Still, analysts said it was too early to call the present trend a turnaround in the dollar, and they warned that the U.S. currency could lose ground again next year as investors begin to focus in earnest on ballooning federal deficits and the persistent current-account deficit. "Saying this is the turning point might be taking it a bit far," Schmieding said of the dollar's recent rally against the single currency. "But the prospects for the euro do look dimmer than a few months ago." [...] iht.com