To: Hawkmoon who wrote (25247 ) 1/2/1999 3:43:00 PM From: goldsnow Respond to of 116764
now all this talk about Euro, Gold.. When in fact the Real King of the Hill and money is Loonie :) Canadian dollar jumps ahead of euro launch 05:46 p.m Dec 31, 1998 Eastern By Jason Hopps TORONTO, Dec 31 (Reuters) - The Canadian dollar took flight on Thursday, lifted to a four-week high against the U.S. dollar as investors bet the newly-launched euro would perform well against the world's most dominant currency. Canada's dollar closed much stronger in generally thin pre-holiday Thursday trade at 65.22 US cents, up sharply from its open of 64.59 US cents. ''I think people were looking for this kind of move maybe early next year, but not on the last day of 1998,'' a foreign-exchange trader with a Canadian bank said. Markets are closed Friday for the New Year's Day holiday. The U.S. dollar dipped immediately after European Union finance ministers unanimously adopted exchange rates for the currencies of the euro's 11 participating members. The euro will be launched at midnight on Thursday in Europe, but trading of the currency will not begin in earnest until Monday. Euro notes and coins will be introduced throughout 11 participating European Union nations after January 1, 2002. Belief that central banks could soon begin stockpiling the euro as a safe-haven alternative to the U.S. dollar appeared to add momentum to the U.S. currency's slide. For Canada, analysts said that the long-heralded convergence of French franc, Italian lire and German mark into a single monetary unit could send investors who desire diverse portfolios scrambling for substitute currencies. ''Canada and Australia, which currently have very small weightings from asset managers, could become more important to bond investors looking to other currencies for opportunities,'' said Andrew Spence, senior economist at Deutsche Bank Securities in Toronto. Canada's weighting in the portfolios of asset managers could also increase as 11 of 14 European Union currencies suddenly disappear, Spence added. The U.S. dollar also slipped to a 12-week low against the Japanese yen. The Canadian dollar also fell to near a three-year low against the yen. Despite the Canadian dollars gains, traders warned that extremely thin pre-holiday markets may have exaggerated the moves. ((Reuters Toronto newsroom (416) 941-8107, toronto.newsroom+reuters.com)) Copyright 1998 Reuters Limited.