Hong Kong Monetary Authority's chief executive aids dollar recovery vs Euro Tuesday, March 22, 2005
NEW YORK The dollar shot higher against the euro on Monday after the Hong Kong Monetary Authority's chief executive, Joseph Yam, said Asian central banks should not rush to raise euro holdings at the expense of the U.S. currency.
.
"The euro may become so popular in this region, it may undermine the stability of international finance," Yam told a meeting of business executives in Hong Kong. Asian central banks may endanger financial markets by shifting reserves, much of which are held in U.S. Treasury notes, too quickly, he said.
.
In late trading, the euro fell to $1.3164 from $1.3314 on Friday. The dollar rose to ¥105.090 from ¥104.715 and to 1.1790 Swiss francs from 1.1647 francs. The pound fell to $1.8985 from $1.9204.
.
The U.S. Federal Reserve is widely expected to raise U.S. interest rates on Tuesday for the seventh consecutive time by a quarter-percentage point to 2.75 percent. But some expect the Fed could signal a more aggressive stance.
.
"Specifically, the market is debating whether the words 'measured' or 'accommodative' will be removed," said Michael Woolfolk, currency strategist with Bank of New York.
.
Tokyo markets were closed for the spring equinox holiday, making for lighter trading.
.
Euro gains in ruble basket
.
The Russian central bank said that it had doubled the weighting of euros used to calculate the nominal exchange rate of the ruble from 10 percent to 20 percent, at the expense of the dollar, Agence-France Press reported from Moscow.
.
The weighting of the dollar in the two-currency "basket" was reduced to 80 percent from 90 percent as of last Tuesday, the bank said. The decision reflects the importance of the European Union in Russian trade and the strength of the euro.
.
In February, the central bank began using a mixture of the two currencies. It had used the dollar alone before then.
.
.
See more of the world that matters - click here for home delivery of the International Herald Tribune.
.
< < Back to Start of Article NEW YORK The dollar shot higher against the euro on Monday after the Hong Kong Monetary Authority's chief executive, Joseph Yam, said Asian central banks should not rush to raise euro holdings at the expense of the U.S. currency.
.
"The euro may become so popular in this region, it may undermine the stability of international finance," Yam told a meeting of business executives in Hong Kong. Asian central banks may endanger financial markets by shifting reserves, much of which are held in U.S. Treasury notes, too quickly, he said.
.
In late trading, the euro fell to $1.3164 from $1.3314 on Friday. The dollar rose to ¥105.090 from ¥104.715 and to 1.1790 Swiss francs from 1.1647 francs. The pound fell to $1.8985 from $1.9204.
.
The U.S. Federal Reserve is widely expected to raise U.S. interest rates on Tuesday for the seventh consecutive time by a quarter-percentage point to 2.75 percent. But some expect the Fed could signal a more aggressive stance.
.
"Specifically, the market is debating whether the words 'measured' or 'accommodative' will be removed," said Michael Woolfolk, currency strategist with Bank of New York.
.
Tokyo markets were closed for the spring equinox holiday, making for lighter trading.
.
Euro gains in ruble basket
.
The Russian central bank said that it had doubled the weighting of euros used to calculate the nominal exchange rate of the ruble from 10 percent to 20 percent, at the expense of the dollar, Agence-France Press reported from Moscow.
.
The weighting of the dollar in the two-currency "basket" was reduced to 80 percent from 90 percent as of last Tuesday, the bank said. The decision reflects the importance of the European Union in Russian trade and the strength of the euro.
.
In February, the central bank began using a mixture of the two currencies. It had used the dollar alone before then.
.
.
See more of the world that matters - click here for home delivery of the International Herald Tribune.
.
< < Back to Start of Article NEW YORK The dollar shot higher against the euro on Monday after the Hong Kong Monetary Authority's chief executive, Joseph Yam, said Asian central banks should not rush to raise euro holdings at the expense of the U.S. currency.
.
"The euro may become so popular in this region, it may undermine the stability of international finance," Yam told a meeting of business executives in Hong Kong. Asian central banks may endanger financial markets by shifting reserves, much of which are held in U.S. Treasury notes, too quickly, he said.
.
In late trading, the euro fell to $1.3164 from $1.3314 on Friday. The dollar rose to ¥105.090 from ¥104.715 and to 1.1790 Swiss francs from 1.1647 francs. The pound fell to $1.8985 from $1.9204.
.
The U.S. Federal Reserve is widely expected to raise U.S. interest rates on Tuesday for the seventh consecutive time by a quarter-percentage point to 2.75 percent. But some expect the Fed could signal a more aggressive stance.
.
"Specifically, the market is debating whether the words 'measured' or 'accommodative' will be removed," said Michael Woolfolk, currency strategist with Bank of New York.
.
Tokyo markets were closed for the spring equinox holiday, making for lighter trading.
.
Euro gains in ruble basket
.
The Russian central bank said that it had doubled the weighting of euros used to calculate the nominal exchange rate of the ruble from 10 percent to 20 percent, at the expense of the dollar, Agence-France Press reported from Moscow.
.
The weighting of the dollar in the two-currency "basket" was reduced to 80 percent from 90 percent as of last Tuesday, the bank said. The decision reflects the importance of the European Union in Russian trade and the strength of the euro.
.
In February, the central bank began using a mixture of the two currencies. It had used the dollar alone before then.
.
.
See more of the world that matters - click here for home delivery of the International Herald Tribune.
.
iht.com |
