LONDON, 5 October 2006 — The dollar gained a bit of ground against major currencies in London yesterday as the market awaited a speech by US Federal Reserve Chairman Ben Bernanke later in the day.
The euro slid to 1.2686 dollars in European trading from 1.2729 dollars late in New York on Tuesday. The dollar climbed to 118.06 yen from 117.91 yen late on Tuesday.
The euro was changing hands at 1.2686 dollars against 1.2729 dollars on Tuesday, 149.74 yen (150.10), 0.6736 pounds (0.6741) and 1.5880 Swiss francs (1.5854). The dollar stood at 118.06 yen (117.91) and 1.2517 Swiss francs (1.2452). On the London Bullion Market, gold prices sank to $573.60 per ounce, from $582.25 late on Tuesday.
Meanwhile, European equity markets advanced yesterday.
In New York, the Dow Jones Industrial Average was up 69.24 points, or 0.59 percent, at 11,796.58, after climbing as high as 11,804.58 - an intraday record.
The Standard & Poor’s 500 Index was up 9.10 points, or 0.68 percent, at 1,343.21, just a hair below its fresh five-year high at 1,343.60, which also was a session high on Wednesday. The NASDAQ Composite Index was up 26.93 points, or 1.19 percent, at 2,270.28. Earlier, the NASDAQ hit a session high at 2,272.05.
Asian stocks closed lower yesterday.
World oil prices fell briefly below $58 per barrel yesterday following news of a bumper increase in crude stockpiles in the United States, dealers said.
New York’s main contract, light sweet crude for delivery in November, plunged to $57.75 per barrel in pit trading, a level last seen on Feb. 16. The contract later recovered to trade at $58.85, an increase of 17 cents from Tuesday’s close. Brent North Sea crude for November delivery sank to $57.70 per barrel in electronic deals — an intra-day low last seen on Dec. 30, 2005. Brent crude later stood at $58.30 per barrel, marking a drop of 13 cents from Tuesday’s finish.