LONDON, 11 October 2006 — The dollar inched up against the euro here yesterday as investors shrugged off the North Korean nuclear test and took heart at prospects for a gradual softening in the US economy that would not imply interest rate reductions.
The single European currency in late-day trade was at 1.2537 dollars after 1.2600 late Monday in New York. The dollar at one point rose to 119.78 yen, its best showing since Dec. 14, 2005, after 119.09 on Monday.
The euro was changing hands at 1.2537 dollars against 1.2600 dollars on Monday, 150.12 yen (150.04), 0.6761 pounds (0.6746) and 1.5915 Swiss francs (1.5891). The dollar stood at 119.75 yen (119.09) and 1.2694 Swiss francs (1.2610).
On the London Bullion Market, gold prices fell to $571.40 per ounce from $575.25 late on Monday.
Meanwhile, European equities advanced yesterday. The London FTSE 100 index of leading shares gained 0.69 percent to close at 6,072.70 points. In Paris the CAC 40 rose 0.47 percent to 5,309.79 while in Frankfurt the DAX added 0.55 percent to finish at 6,117.71. The DJ Euro Stoxx 50 index of leading euro zone shares closed up 0.54 percent at 3,960.67.
In New York, US stocks dipped yesterday. The Dow Jones Industrial Average was down 16.97 points, or 0.14 percent, at 11,840.84. The Standard & Poor’s 500 Index was down just 0.78 of a point, or 0.06 percent, at 1,349.88. The NASDAQ Composite Index was down 3.41 points, or 0.15 percent, at 2,308.20.
Asian stocks rallied yesterday. In Tokyo, the benchmark Nikkei-225 index closed up 41.19 points or 0.25 percent at 16,477.25.
World crude prices dropped below $59 in New York trade yesterday, as traders cast doubt on the likelihood of an output reduction by the OPEC oil organization.
New York’s main contract, light sweet crude for delivery in November, dived $1.01 to $58.95 per barrel in pit trading. In London, Brent North Sea crude for November delivery slumped 93 cents to $59.61 per barrel in electronic deals.