LONDON/NEW YORK, 15 January 2004 — The dollar remained relatively well-supported yesterday, despite slipping in late trade, after the European Central Bank stepped up its rhetoric against the euro’s rapid appreciation, analysts said. The single European currency stood at 1.2680 dollars against 1.2765 late on Tuesday in New York. The dollar traded at 106.06 yen from 106.20 on Tuesday.
“It’s just general anxiety about the increasing amount of comment,” said Kamal Sharma, currency strategist at Dresdner Kleinwort Wasserstein to describe the market’s mood. The latest bout stemmed from comments earlier by ECB governing council member and Bank of France governor Christian Noyer, which came on the heels of similar comments from ECB president Jean-Claude Trichet on Monday.
The euro was changing hands at 1.2680 dollars from 1.2765 late on Tuesday in New York, 134.48 yen (135.59), 0.6901 pounds (0.6911) and 1.5603 Swiss francs (1.5584). The dollar stood at 106.06 yen (106.20) and 1.2305 Swiss francs (1.2206). The pound was at 1.8372 dollars (1.8463), 194.86 yen (196.05) and 2.2605 Swiss francs (2.2551).
Stocks in the United States yesterday rose, as investors cheered a report showing a narrowing trade deficit and awaited earnings from technology bellwethers including Intel Corp. after the bell. The Dow Jones industrial average rose 70.67 points, or 0.68 percent, to 10,497.85.
The technology-laced NASDAQ Composite Index gained 6.44 points, or 0.31 percent, to 2,102.88.
Asian stock markets were mixed on investor caution after falls on Wall Street and ahead of the Lunar New Year holidays. Most markets were weaker in line with Wall Street, but some rose later in the day.
Japanese share prices closed flat as cautious position-squaring ahead of key US quarterly corporate earnings reports reversed initial losses.
The Tokyo Stock Exchange’s Nikkei-225 index gained 13.32 points or 0.12 percent to 10,863.00 while the broader Topix index of all first section stocks lost 0.45 points or 0.04 percent to 1,057.95.
Hong Kong share prices closed 0.57 percent lower after investors unloaded HSBC shares but an improving property sector outlook provided support and limited the downturn. The key Hang Seng Index lost 75.77 points to close at 13,320.88.