LONDON, 23 March 2006 — The dollar weakened slightly against the euro in late trading here yesterday on uncertain prospects for interest rate hikes in the United States.
The single European currency was at 1.2099 dollars after 1.2090 late Tuesday in New York. The dollar was trading at 116.69 yen against 117.26 on Tuesday.
In the past few weeks, weak US data weighed on rate hike expectations and in turn on the dollar. But on Tuesday a pick-up in US core producer prices and comments from new Federal Reserve chief Ben Bernanke that did not seem to point to a pause in US monetary tightening helped prop up the dollar.
The euro was changing hands at 1.2099 dollars against 1.2090 late on Tuesday, 141.22 yen (141.79), 0.6922 pounds (0.6917) and 1.5745 Swiss francs (1.5735).
The dollar stood at 116.69 yen (117.26) and 1.3012 Swiss francs (1.3012).
On the London Bullion Market, the price of an ounce of gold rose to $550.75 per ounce from $547.50 on Tuesday.
Meanwhile, European stock exchanges sprinted ahead yesterday on strong corporate news, with London breaking through the 6,000-point level for the first time in five years.
The London FTSE 100 index gained 0.27 percent to close at 6,007.5, finishing above the 6,000 level for the first time since March 8, 2001. In Paris the CAC 40 rose 0.90 percent to end the day at 5,194.78 while in Frankfurt the Dax added 0.35 percent to reach 5,932.31. The Euro Stoxx 50 index of leading euro zone shares added 0.53 percent to finish at 3,868.48.
Elsewhere there were gains of 0.42 percent to 469.03 on the AEX in Amsterdam, 0.24 percent to 3,977.96 on the Bel 20 in Brussels and 0.09 percent to 8,064 on the Swiss Market Idex. The SP Mib in Milan fell 0.22 percent to 38,519.
World oil prices rose slightly yesterday after data revealed that US crude inventories had unexpectedly fallen last week, analysts said.
New York’s main contract, light sweet crude for delivery in May, climbed by 16 cents to $62.50 per barrel in pit trading. In London yesterday, the price of Brent North Sea crude for May delivery gained 29 cents to $62.42 per barrel in electronic deals.
