LONDON, 23 September 2003 — The euro shot up against the dollar here yesterday, although attention was riveted on the US currency’s plunge against the yen following an appeal from Group of Seven finance ministers for exchange rate flexibility.
The euro in late-day deals was at 1.1469 dollars, up from 1.1376 in New York late on Friday. The dollar had fallen to 111.97 yen from 114.09 on Friday. In Asian trading at one point it had plummeted to 111.39, its lowest reading since December 2000.
The euro was changing hands at 1.1469 dollars from 1.1376 late on Friday in New York, 128.41 yen (129.78), 0.6964 pounds (0.6956) and 1.5541 Swiss francs from 1.5549. The dollar was being quoted at 111.97 yen (114.09) and 1.3547 Swiss francs (1.3668).
Gold prices also jumped in Europe. In Asia, the gold market was just a whisker away from the 6-1/2 year high scored on Feb. 5 at $388.50 an ounce as the dollar weakened and speculators - already enamored of the metal’s safe-haven appeal - saw their buying power strengthened.
Gold closed in Europe at $384.20/384.70 a troy ounce compared with $381.60/3 82.30 at Friday’s New York close.
Meanwhile, European stock markets fell back yesterday as the euro leapt in value against the dollar, with London’s FTSE 100 index losing 0.68 percent to 4,228.2 points. The CAC 40 plunged 2.69 percent to close at 3,282.95 points in Paris.
In New York, US stocks slumped. The Dow Jones Industrial Average fell 106 points, or 1.10 percent, to 9,539. The broader Standard & Poor’s 500 Index gave up 15 points, or 1.41 percent, to 1,022. The technology-laced NASDAQ Composite Index fell 30 points, or 1.59 percent, to 1,875.
Asian shares closed mostly lower yesterday, led by heavy sell-off in Tokyo and Seoul as investors opted to take profits amid concerns that a sharp slide in the dollar will hit their exporters hard, dealers said.
The Tokyo Stock Exchange’s Nikkei 225 index lost 463.32 points to end the day at 10,475.10. In Seoul, the composite index closed down 33.36 points or 4.46 percent at 714.89.