LONDON, 13 September 2005 — The dollar gained against the euro yesterday, pushing Europe’s single currency below the key 1.23 level as US rate hike expectations firmed and concern grew over the upcoming German elections.
The euro fell to 1.2289 dollars in European trading from 1.2408 late on Friday in New York. The dollar stood at 109.89 yen from 109.65 on Friday.
The euro’s decline accelerated after it slipped under 1.23 dollars, taking it to its lowest level against the US currency in nearly two weeks.
The euro was changing hands at 1.22289 dollars against 1.2408 late Friday in New York, 135.06 yen (136.06), 0.6740 pounds (0.6742) and 1.5448 Swiss francs (1.5423). The dollar stood at 109.89 yen (109.65) and 1.2571 Swiss francs (1.2431).
Meanwhile, European stock markets were mostly higher yesterday.
The London FTSE 100 index rose 0.29 percent to 5,375.1 points, the Frankfurt DAX 30 eased 0.32 percent to 4,989.98 points and in Paris the CAC 40 was flat at 4,491.82. In morning deals the CAC had risen above 4,500 points, where it has not closed since August 11. The DJ Euro Stoxx 50 index of leading euro zone shares dipped 0.15 percent to 3,354.64 points.
In New York, the Dow Jones Industrial Average was up 5.02 points, or 0.05 percent, at 10,683.58. The Standard & Poor’s 500 Index was down 1.06 points, or 0.09 percent, at 1,240.42. The technology-laced NASDAQ Composite Index was up 6.19 points, or 0.28 percent, at 2,181.70.
Asian stocks closed mostly firmer yesterday. The Tokyo Stock Exchange’s benchmark Nikkei-225 index gained 204.39 points to 12,896.43. In Seoul, the KOSPI index closed up 5.86 points at 1,158.36. In Hong Kong, the Hang Seng Index closed up 34.02 points at 15,199.79.