LONDON, 21 September 2006 — The dollar dipped yesterday ahead of the latest US interest rate decision by the Federal Reserve, while the baht began recovering heavy losses caused by a military coup in Thailand.
The euro rose to 1.2705 dollars in late European trading from 1.2675 dollars late in New York on Tuesday. The dollar stood at 117.27 yen, compared with 117.71 yen late on Tuesday. The US currency, which had risen on Tuesday to as high as 37.95 Thai baht — a 2.0 percent one-day climb — fell back to 37.69 baht. The euro was changing hands at 1.2705 dollars against 1.2675 dollars on Tuesday, 149.00 yen (149.23), 0.6721 pounds (0.6736) and 1.5873 Swiss francs (1.5865). The dollar stood at 117.27 yen (117.71) and 1.2494 Swiss francs (1.2512). On the London Bullion Market, the price of gold fell to $580.25 per ounce, from $583.50 late on Tuesday.
Meanwhile, European stock markets advanced yesterday. In New York, the Dow Jones Industrial Average was up 65.56 points, or 0.57 percent, at 11,606.47.
World oil prices slid yesterday to the lowest points for six months, below $61 per barrel, after official data showed a surge in stockpiles of US distillates ahead of the northern hemisphere winter, traders said.
New York’s light sweet crude hit $60.60 - the lowest point since March 21. In London, Brent North Sea crude dropped to $60.74 - the lowest point since March 13. At about 1600 GMT, New York’s main contract, light sweet crude for delivery in October stood at $60.95 per barrel in pit trading, down 71 cents compared with Tuesday’s close. Brent North Sea crude for November delivery plunged $1.03 to $61.14 per barrel in electronic trading.
