LONDON, 20 July 2006 — The dollar gave back yesterday nearly all the gains it had chalked up this week as markets interpreted comments on the US economy by US Federal Reserve chief Ben Bernanke as an indication that interest rates there might not rise higher for the time being.
The euro rose to 1.2559 dollars in late European trading, from 1.2502 dollars late on Tuesday in New York. The dollar eased back to 117.11 yen from 117.31 yen late on Tuesday.
The euro was changing hands at 1.2494 dollars against 1.2502 on Tuesday, 146.75 yen (146.66), 0.6836 pounds (0.6846) and 1.5687 Swiss francs (1.5664). The dollar stood at 117.48 yen (117.31) and 1.2558 Swiss francs (1.2528).
On the London Bullion Market, the price of an ounce of gold slid to $627.90 per ounce, from $645 late on Tuesday.
Meanwhile, European shares posted strong gains yesterday.
The London FTSE 100 index of leading shares gained 1.69 percent to close at 5,778 points. In Paris the CAC 40 leapt by 2.37 percent to 4,846.54 while in Frankfurt the Dax jumped 2.64 percent to 5,539.29. The DJ Euro Stoxx 50 index of leading euro zone shares rose by 2.48 percent to 3,578.86 points.
In Amsterdam, the AEX index rose by 2.49 percent to 437.44 points, the Swiss SMI was up 1.91 percent at 7,603.57, in Milan the SP Mib gained 2.27 percent to 35,980, in Madrid the Ibex-35 rose 2.37 percent to 11,425.7 and in Brussels the Bel-20 closed 1.96 percent higher at 3,660.48.
In New York, US stocks rose to their biggest one-day percentage gain in three weeks yesterday. The Dow Jones Industrial Average was up 142.55 points, or 1.32 percent, at 10,941.78. The Standard & Poor’s 500 Index was up 16.71 points, or 1.35 percent, at 1,253.57. The NASDAQ Composite Index was up 23.81 points, or 1.17 percent, at 2,067.03.