LONDON, 9 March 2006 — The dollar dipped against the euro here yesterday ahead of key US economic data, while the yen weakened slightly ahead of a Bank of Japan decision Thursday that could mean the end of its ultra-low interest rate policy. The single European currency in late-day trade was at $1.1919 against $1.1885 late Tuesday in New York. The dollar was meanwhile trading at 117.89 yen, up from 117.82 on Tuesday. The euro was changing hands at $1.1919 against $1.1885 late on Tuesday, 140.49 yen (140.05), 0.6864 pounds (0.6845) and 1.5595 Swiss francs (1.5610). The dollar stood at 117.89 yen (117.82) and 1.3086 Swiss francs (1.3132).
On the London Bullion Market, the price of an ounce of gold fell to $544.75 from $553 on Tuesday.
Meanwhile, European stock exchanges faltered yesterday, with the London FTSE 100 index giving up 0.76 percent to close at 5,812.9. In Paris, the CAC 40 index lost 0.45 percent to finish at 4,969.51 while in Frankfurt the DAX fell 1.15 percent to 5,673.36.
In New York, US stocks floundered yesterday as the ongoing market malaise over rising interest rates was exacerbated by news that Google had withdrawn financial projections released by mistake a week ago.
At 1645 GMT, the Dow Jones Industrial Average traded down 38.50 points (0.35 percent) to 10,942.19 and the NASDAQ composite lost 15.31 points (0.67 percent) to 2,253.07. The broad-market Standard and Poor’s 500 index shed 4.89 points (0.38 percent) to 1,270.99.
World oil prices dived under $60 per barrel yesterday following strong US energy stockpiles data and after OPEC maintained its crude production quota, dealers said.
New York’s main contract, light sweet crude for delivery in April, plummeted $2.03 to $59.55 per barrel in pit deals. In London, the price of Brent North Sea crude for April delivery sank $1.67 to $59.50 per barrel.