| Sharp Euro Down Against U.S. Dollar |
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| Friday, 05 March 2010 08:20 | |||
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London
- The euro fell sharply against the dollar Thursday, due to continuing
concerns about the debt crisis of the Greek and U.S. housing data
failed to shake investor confidence in the U.S. health recovery.
The European single currency in late trade in London was at 1.3571 dollars against 1.3691 dollars late Wednesday in New York. Meanwhile, the dollar was at 89.04 yen, up from 88.46 yen on Wednesday. Investors uneasy because of news that sales of used homes (pending home) in the United States unexpectedly fell in January, prompting investors seek safe-haven dollar than the currencies like the euro at risk. Former home sales fell 7.6 percent in January compared with December, showed that the U.S. housing market, which helped trigger the global financial crisis, not fully stable. Traders are also nervous because they are waiting for what they hope will become evident, the European initiative to help the Greek paralyzed by the debt crisis and the public deficit. "The national debt (Greece) remain key obstacles to the action euro rally," said Michael Hewson of CMC Markets. Greek Government bowed to pressure the euro zone and announced the steps of new savings on Wednesday, with Prime Minister George Papandreou stressed that it is time for Greece to the European partners ahead with concrete support. "Although the clarification (Wednesday) for their savings packages, Greece has failed to stabilize the market jitters," said Owen Ireland from ODL Securities. While EU officials welcomed the new measures, the Germans continued to insist it is up to Greece to clean up the mess the public finances, threw a shadow over hopes that the euro zone bailout package can be made. Papandreou will hold crucial talks on Friday with German Chancellor Angela Merkel and on Sunday with French President Nicholas Sarkozy. Meanwhile, Greece issued 10 year bonds for 5.0 billion euros on Thursday as a test of the credibility of the market, to demand estimated at 15 billion euros. "We are satisfied that there is high demand and this means something, is an indication," said Greek government spokesman George Petalotis told reporters. At Commerzbank analyst commented that "due to the difficult market situation that the Greek government (previously) delayed this publication. "If, has announced the steps of new savings, the government will be able to raise capital under reasonable terms, (could) lead to a correction in the dollar-euro rate." Decisions taken by the Bank of England (BoE) and European Central Bank (ECB) to keep their benchmark rate unchanged was widely expected and seemed to be little immediate impact. The market is said to be in a cautious mood ahead of U.S. jobs report is being monitored closely on Friday, is expected to give a clear signal about how the effectiveness of the United States in dealing with recession. In London on Thursday, the euro changed hands at 1.3571 dollars 1.3691 against the dollar on Wednesday, at 120.85 yen (121.15), 0.9028 pounds (0.9070) and 1.4630 Swiss francs (1.4625). Dollar stood at 89.04 yen (88.46) and 1.0781 Swiss francs (1.0675). The pound was at 1.5031 dollars (1.5094). On the London Bullion Market, gold prices slipped to 1134.50 dollars per ounce from 1136.50 dollars per ounce on Wednesday. | antaranews.com | tenderoffer.biz |
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