LONDON, 16 July 2004 — The dollar gained modest ground on the euro here yesterday following the release of US economic data firming up expectations the Federal Reserve will move gradually to raise interest rates in the months to come.
The single European currency in late-day deals was at 1.2368 dollars after 1.2381 late Wednesday in New York.
The dollar was also trading at 109.58 yen against 109.16 on Wednesday.
Apart from a mild downward reaction early in the day, the dollar managed to retain its levels partly because a stronger-than-expected New York business survey helped offset concerns elsewhere.
Meanwhile, sterling remained on the backfoot, largely on profit-taking and concerns over possible overvaluation of the British currency, despite upbeat remarks by Chancellor of the Exchequer Gordon Brown and a relatively buoyant economic survey from the British Chambers of Commerce.
The euro was changing hands at 1.2368 dollars from 1.2381 late on Wednesday in New York, 135.59 yen (135.16), 0.6679 pounds (0.6672) and 1.5272 Swiss francs (1.5219). The dollar stood at 109.58 yen (109.16) and 1.2344 Swiss francs (1.2291).
The pound was at 1.8350 dollars (1.8557), 203.09 yen (202.55) and 2.2873 Swiss francs (2.2808).
