LONDON, 14 July 2005 — The dollar reversed falls earlier in the week to gain ground against the euro yesterday after better-than-expected trade data in the United States showed a narrowing of the country’s trade deficit.
In late trade, the euro was at 1.2094 dollars compared with 1.2241 dollars late on Tuesday. The dollar was quoted at 112.08 yens compared with 110.78 yens late on Tuesday night.
Official figures from the US Commerce Department showed the US trade deficit in May fell 2.8 percent to $55.3 billion (45.73 million euros) owing to a decline in oil prices — the US is a net importer of oil - and stronger export growth.
In late trade, the euro was at 1.2094 dollars compared with 1.2241 dollars at the same time on Tuesday, 135.52 yens against 135.64 yens, 0.6888 pounds versus 0.6880, and 1.5595 Swiss francs versus 1.5562.
Meanwhile, the London FTSE 100 index gained 0.55 percent to close at 5,245.9, while in Paris the CAC 40 climbed 0.69 percent to finish at 4,343.62.
In New York, the Dow Jones Industrial Average rose 34.76 points (0.33 percent) to 10,548.65 while the NASDAQ composite edged up a fractional 0.29 point (0.01 percent) to 2,143.44 at 1645 GMT.
Meanwhile, world oil prices fell yesterday.
