LONDON, 14 December 2006 — The euro fell slightly against the dollar yesterday a day after the US Federal Reserve Bank kept its benchmark interest rate unchanged for the fourth consecutive month. The 12-nation euro bought $1.3214 in European trading - below the $1.3251 it bought in New York. The downtick came as the US Commerce Department said the US trade deficit fell to $58.9 billion in October, its lowest level in 14 months.
However, the British currency has failed to fulfill analysts’ predictions that it would hit the $2 mark. It fell to $1.9655 from $1.9673 on Tuesday. The dollar rose against the Japanese currency, buying 117.37 yen, up from 116.99 yen on Tuesday.
European shares ended higher yesterday. The FTSEurofirst 300 index of top European shares added 0.6 percent at 1,471.57 points, its highest closing level since Nov. 16. Britain’s top share index ended higher, with the FTSE 100 closing up 36.1 points, or 0.6 percent, at 6,192.5 points — its strongest close since Nov. 21 and about 60 points off a 5-1/2 year high in mid-November.
The German stock exchange closed at a six-year high, with its benchmark index of blue-chip stocks rising as high as 6,521.02. It closed at 6,518.16 - up from yesterday’s closing figure of 6,476.17. The last time it was higher was in March 2000, when it reached 8,064. Paris’s CAC-40 closed at 5475.85 points, up 49.03 or 0.90 percent.
In US, the Dow Jones Industrial Average rose 41.90, or 0.34 percent, to 12,357.48 in early trading. Broader stock indicators also advanced. The Standard & Poor’s 500 index was up 4.47, or 0.32 percent, at 1,416.03, and the NASDAQ composite index added 7.44, or 0.31 percent, to 2,439.04.