LONDON, 23 September 2006 — The dollar steadied yesterday against the euro after earlier falling to 16-day lows after discouraging economic data from the US cemented market expectations that the next interest rate move will be down. The euro stood at 1.2793 dollars in late European trading from 1.2779 dollars late in New York on Thursday. The dollar was trading at 116.44 yen, compared with 116.33 yen late on Thursday.
The dollar had fallen to over two-week lows against major currencies earlier in the day in a continued response to Thursday’s dismal Philadelphia Federal Reserve survey, which cemented market expectations that the next interest rate move will be down.
The euro was changing hands at 1.2793 dollars against 1.2779 dollars on Thursday, 148.97 yen (148.66), 0.6732 pounds (0.6718) and 1.5799 Swiss francs (1.5887).
The dollar stood at 116.44 yen (116.33) and 1.2353 Swiss francs (1.2431). The pound was being traded at 1.9006 dollars (1.9021).
On the London Bullion Market, the price of gold rose to $589 per ounce, from $578.75 late on Thursday.
European stock markets fell heavily yesterday. The London FTSE 100 index of leading shares lost 1.26 percent to close at 5,822.30. In Paris the CAC 40 fell 1.27 percent to 5,141.95 while in Frankfurt the DAX dropped 1.32 percent to finish at 5,883.32.
The DJ Euro Stoxx 50 index of leading euro zone shares slid 1.15 percent to 3,812.73.
In New York, the Dow Jones Industrial Average lost 35.30 points (0.31 percent) to 11,497.93 and the tech-heavy NASDAQ composite shed 21.80 points (0.97 percent) to 2,215.95 at 1530 GMT. The broad-market Standard and Poor’s 500 index retreated 5.33 points (0.40 percent) to 1,312.70.
Asian stocks closed lower yesterday. The Tokyo Stock Exchange’s benchmark Nikkei-225 index tumbled 199.56 points or 1.26 percent to 15,634.67, the lowest closing level since Aug. 11.
World oil prices shed earlier gains yesterday on easing global supply worries and held close to recent six-month low points, dealers said. New York’s main contract, light sweet crude for delivery in November, slid 64 cents to $60.95 dollars per barrel in pit trading.
In London, Brent North Sea crude for November delivery shed 56 cents to $60.78 per barrel in electronic deals.
