LONDON,15 September 2006 — The dollar was slightly weaker against the euro yesterday following retail sales data in the US, traders said. The euro rose to 1.2737 dollars in late European trading from 1.2690 dollars late in New York on Wednesday. The dollar stood at 117.52 yen, from 117.67 yen late on Wednesday. US retail sales growth faltered during August, but not as much as anticipated, official figures showed Thursday.
The euro was changing hands at 1.2737 dollars against 1.2690 dollars on Wednesday, 149.72 yen (149.34), 0.6745 pounds (0.6761) and 1.5921 Swiss francs (1.5876). The dollar stood at 117.52 yen (117.67) and 1.2499 Swiss francs (1.2508). The pound was being traded at 1.8886 dollars (1.8764). On the London Bullion Market, the price of an ounce of gold fell to 584.40 dollars, from 589 dollars late on Wednesday.
US blue-chip stocks slipped yesterday after a surprisingly large increase in import prices sparked concerns that inflation may still cut into the bottom line despite a drop in oil prices. However, in the duel over who has the higher inflation risk, the dollar fell against the euro after the top European Central Bank official warned on rising price pressures.
The Dow Jones industrial average was down 9.61 points, or 0.08 percent, at 11,533.71. The Standard & Poor’s 500 Index was down 1.32 points, or 0.10 percent, at 1,316.75. But the NASDAQ Composite Index turned marginally higher, rising 0.64 of a point, or 0.03 percent, to 2,228.31 in early afternoon trading.
Asian stocks closed mostly higher yesterday after further gains on Wall Street as investors welcomed easier commodity prices as a lead indicator for lower inflation and interest rates, dealers said in Hong Kong.