LONDON, 21 October 2003 — The dollar was stronger in late London trade yesterday with attention firmly fixed on official policy following US Treasury Secretary John Snow’s supportive remarks over the weekend, dealers said.
The dollar gains were sparked by an interview Snow gave to the British newspaper The Times, which also quoted him as saying that US interest rates were set to rise as an economic recovery gathered pace. The single European currency stood at 1.1670 dollars against 1.1681 late on Friday in New York. The dollar edged up to 110.21 yen from 109.33 on Friday.
Meanwhile, European stocks struggled upward in fitful trading yesterday as limited corporate news failed to totally thrill investors.
The London FTSE 100 index closed up 0.08 percent at 4,347.5 points, in Paris the CAC 40 edged 0.15 percent higher to 3,358.80, while in Frankfurt the DAX was up 0.52 percent at 3,534.79 points in late trades. The DJ Euro Stoxx 50 index of leading euro-zone shares strengthened 0.27 percent to 2,557.66 points.
In New York, stocks gained a bit in wobbly trade yesterday. The blue-chip Dow Jones industrials rose 24 points, or 0.25 percent, to 9,746. The broad Standard & Poor’s 500 gained 2 points, or 0.16 percent, to 1,041. The technology-packed NASDAQ Composite Index advanced 8 points, or 0.44 percent, to 1,921.
Share markets in most of Asia rose yesterday.
Oil prices fell for a second consecutive session yesterday when the head of the OPEC group said producers could raise output to cool a sizzling market rally.
The Middle East-dominated group decided only last month to curtail supplies from November 1, but it has been forced to consider increasing again after prices spiked.
US crude futures fell 15 cents to $30.53 a barrel as investment funds took profits and London Brent crude dropped 23 cents to $28.80, on the heels of a 98-cent drop on Friday. The US market peaked 10 days ago at $32.60, a level which many economists say could hurt world economic growth.
OPEC President Abdullah al-Attiyah said yesterday he expected the group to raise production again if prices for an index of OPEC crudes stayed high. “The statement is one of the factors contributing to a weaker opening today,” said brokers Man Financial in a report.