LONDON, 19 October 2006 — The euro drifted lower yesterday against the dollar as the US currency drew strength from US inflation data that came in on the weak side but still suggested the Federal Reserve was right to be worried about inflation.
The European single currency dropped to 1.2515 dollars in late European trading from 1.2543 dollars late in New York on Tuesday. The dollar stood at 119.11 yen from 118.89 yen late on Tuesday.
The euro was changing hands at 1.2515 dollars against 1.2543 dollars on Tuesday, 149.05 yen (149.13), 0.6702 pounds (0.6706) and 1.5924 Swiss francs (1.5905). The dollar stood at 119.11 yen (118.89) and 1.2723 Swiss francs (1.2678).
On the London Bullion Market, gold prices increased to $594 per ounce from $590 late on Tuesday.
Meanwhile, European stock exchanges posted healthy gains yesterday, powered by upbeat US economic indicators and a new record high on Wall Street, as well as positive corporate news.
The London FTSE 100 index rose 0.68 percent to 6,150.40 points while in Paris the CAC added 1.10 percent to finish at 5,361.29. In Frankfurt the DAX gained 1.11 percent to close at 6,182.78. The Euro Stoxx 50 index of leading euro zone shares took on 1.06 percent to reach 3,991.38.
The Dow Jones Industrial Average of 30 blue-chips burst through the 12,000 barrier just after the opening bell was rung on the floor of the New York Stock Exchange.
At 1523 GMT, the Dow had pared its gains and was trading up 46.59 points (0.39 percent) at 11,996.61 after knocking up a series of record highs in recent weeks.
The NASDAQ composite was down 0.13 points (0.01 percent) at 2,344.82 while the broader-market Standard and Poor’s 500 index had gained 3.51 points (0.26 percent) to 1,367.56 at 1523 GMT.
Asian stocks closed mostly higher with limited gains yesterday. In Tokyo, the Nikkei-225 index rose 41.41 points or 0.25 percent to 16,653.00.