LONDON, 9 February 2005 — The dollar fell back against the euro yesterday as the market took a breather after strong recent gains for the US currency, although analysts expect the rally to resume soon. The euro rose to 1.2777 dollars from 1.2756 late on Monday in New York. The dollar rose to 105.71 yen from 104.89 on Monday. The US currency eased against the euro after reaching a three-month high point on Monday following comments from Federal Reserve Chairman Alan Greenspan that he expected the US current account deficit to narrow.
The euro was changing hands at 1.2777 dollars against 1.2756 late on Monday in New York, 135.04 yen (133.80), 0.6884 pounds (0.6867) and 1.5599 Swiss francs (1.5620). The dollar stood at 105.71 yen (104.89) and 1.2208 Swiss francs (1.2243).
US stocks were nearly unchanged as investors digested recent gains and awaited earnings from Cisco Systems Inc., the world’s No. 1 network equipment-maker, due after the market’s close. The Dow Jones industrial average was down 0.29 point at 10,715.47. The technology-laced NASDAQ Composite Index was up 1.81 points, or 0.09 percent, at 2,083.84.
Asian stock markets closed higher yesterday as the dollar strengthened and despite caution ahead of the Lunar New Year break celebrated by many countries in the region.
Many stock markets in the region were closed with others such as Hong Kong and Singapore trading for only half a day.