28 April 2008
The euro returned some ground against the dollar Monday
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LONDON, April 28, 2008 - The euro returned some ground against the dollar Monday at the end of the day, as investors awaited further clues on the outlook for the U.S. economy before the decision on Wednesday on its rate the Federal Reserve (Fed).
Around 16H00 GMT, one euro was worth 1.5647 dollars against 1.5624 dollars Friday to 21H00 GMT.
The European currency was conducted face the yen at 163.23 yen against the euro, against 163.13 yen the previous day.
The greenback fell on the other hand face the Japanese currency at 104.35 yen to the dollar, against 104.39 yen Friday evening.
The euro marked a slight lead facing a dollar weakened by speculation of interest rate cuts by the Fed, the forex getting rid of their assets in green.
Given the fragility of the U.S. economy, the institution should further lower its rates, but many analysts expect the Fed announced a pause after a further reduction in the cost of money.
"The Fed should make a modest decline of only a quarter point while some of its members are becoming increasingly cautious about the risks of inflationary pressures," said Daragh Maher, Calyon.
Since September 2007, the Fed has already reduced the rate of three percentage points, 5.25% to 2.25%.
In contrast, the ECB maintains the rent of the single currency 4% since June 2007 and regularly repeated his intention not to lower rates and focus on the fight against inflation, putting on the agenda support the growth in the second plan.
The euro was however limited its gains Monday at midday by the publication of figures on German inflation: consumer prices were sharply assagis in April in several regional states mainly due to a decline in tourism services, while prices of food and energy remained high.
"These figures could help the European Central Bank (ECB) to ease its fears about inflationary pressures in the largest euro area economy," said Jennifer McKeown, Capital Economics, predicting a possible rate cut in Europe in the third quarter.
At the same time, the European Commission has sharply raised Monday its forecast of inflation in the euro zone this year to 3.2%, a record since the launch of the single European currency, due to soaring energy prices and food, and has slightly lowered the one on growth, at 1.7%.
"The great uncertainty remains as regards the impact of the crisis on the real economy," she stressed. Joaquin Almunia, European Commissioner for Economic Affairs, acknowledged in this context that the strong euro, which is higher than 1.50 dollar, weighed on exports and therefore on growth prospects.
The British pound rose against the euro, at 7863 pence to the euro, as against the dollar at 1.9904 dollar for a pound.
The Swiss franc fell face the single currency at 1.6179 francs to one euro climbed against the dollar, at 1.0340 francs to the dollar.
The ounce of gold was quoted at 890.50 dollars fixing evening against 891.50 dollars on Friday.
The Chinese currency closed up at 7.0014 yuan to the dollar, against 7.0100 the previous day. Over the course of Monday 16H00 GMT Friday 21H00 GMT EUR / USD 1.5647 1.5624 EUR / JPY 163.23 163.13 EUR / CHF 1.6179 1.6166 EUR / GBP 0.7863 0.7867 USD / JPY 104 , 35 104.39 USD / CHF 1.0340 1.0346 GBP / USD 1.9904 1.9854
by erectusplus at 18:49:00 |
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