Euro Crumbles Against Dollar

LONDON, 19 September 2003 — The euro crumbled against the dollar here yesterday following better than expected employment statistics in the United States. The dollar meanwhile slid to a two-and-a-half-year low against the yen as dealers tested Japanese authorities ahead of a meeting in Dubai this week end of Group of Seven finance ministers.

The euro in late-day deals was at 1.1231 dollars, down from 1.281 in New York late Wednesday. The greenback was trading at 115.22 yen, against 116.07 on Wednesday.

The dollar surged on reports of a decline in jobless claims in the United States, which boosted hopes that the labor market may be on the mend.

First-time claims for compensation fell 29,000 to below the psychologically-important 400,000 level at 399,000.

Meanwhile, European stock markets closed with modest gains yesterday.

The London FTSE 100 index added 0.51 percent from Wednesday to finish at 4,314.7 points, while in Paris the CAC 40 gained 0.62 percent to reach 3,415.01.

In Frankfurt the DAX was up 1.39 percent to 3,610.53 in late-day trading. The DJ Euro Stoxx 50 index edged up 0.80 percent to 2,560. Elsewhere in Europe shares rose 0.30 percent to 338.4 in Amsterdam, 0.69 percent to 7,195.7 in Madrid, 1.18 percent to 26,197 in Milan and 0.04 percent to 2,122.82 in Brussels.

In New York, the Dow Jones Industrial Average rose 98.47 points, or 1.03 percent, to 9,644.12. The broader Standard & Poor’s 500 Index gained 12.1 points, or 1.18 percent, to 1,038.07. The technology-laced NASDAQ Composite Index added 19.86 points, or 1.05 percent, to 1,902.96.

Asian stock markets were little yesterday. The Nikkei gained 43.21 points or 0.39 percent to close at 11,033.32. The last time the Nikkei closed above 11,000 was on June 13, 2002, when it finished at 11,144.84.

Oil prices fell further yesterday. The price of Brent North Sea crude oil for November delivery dropped 24 cents a barrel to $25.43 in London trading. New York’s reference light sweet crude October contract was 11 cents lower at $26.92 dollars per barrel in morning deals.