LONDON, 13 September 2006 — The dollar survived a knee-jerk sell-off yesterday, prompted by news that the US trade deficit in July expanded to record levels, and gained some ground against the euro.
The single European currency in late-day trade was at 1.2692 dollars after 1.2700 late Monday in New York. The dollar was meanwhile trading at 117.78 yen, up from 117.63 on Monday.
The euro was changing hands at 1.2692 dollars against 1.2700 on Monday, 149.51 yen (149.41), 0.6771 pounds (0.6808) and 1.5837 Swiss francs (1.5810). The dollar stood at 117.78 yen (117.63) and 1.2474 Swiss francs (1.2448).
On the London Bullion Market, the price of an ounce of gold climbed to $590.70 per ounce from $588 late on Monday.
Meanwhile, European stock exchanges posted strong gains yesterday on reports of possible mergers and despite the disclosure of another record US trade deficit. The London FTSE 100 index added 0.76 percent to close at 5,895.50, while in Paris the CAC 40 rose 1.34 percent to reach 5,125.97. The Frankfurt DAX gained 1.30 percent to finish at 5,873.85. The Euro Stoxx 50 index of leading euro zone shares rose 1.25 percent to 3,788.96.
In New York, at 1520 GMT, the Dow Jones Industrial Average traded up 59.07 points (0.52 percent) at 11,455.91 while the tech-heavy NASDAQ added 17.99 points (0.83 percent) to 2,191.24. The Standard and Poor’s 500 broad-market index advanced 7.46 points (0.57 percent) to 1,307.00.
Asian stocks closed mostly lower again yesterday. The Tokyo Stock Exchange’s benchmark Nikkei-225 index fell 75.04 points to 15,719.34. In Seoul, The KOSPI index lost 6.04 points at 1,328.04, after trading between 1,323.90 and 1,339.31. In Hong Kong, the benchmark Hang Seng Index closed up 126.81 points at 17,075.40, off a low of 16,921.53 and a high of 17,128.87.
In Bombay, the benchmark 30-share Sensex rose 110.10 points to 11,660.79.