LONDON, 18 October 2006 — The euro held out against the dollar yesterday despite data favoring the US currency, including a key inflation survey and a snapshot of capital flows into the US during August, analysts said.
The yen, meanwhile, continued to post gains after the Russian central bank announced that it planned to add the Japanese currency to its reserves.
The European single currency firmed to 1.2562 dollars in late European trading yesterday, from 1.2531 dollars late in New York on Monday. The dollar fell to 118.64 yen from 119.02 yen late on Monday.
The euro was changing hands at 1.2562 dollars against 1.2531 dollars on Monday, 149.06 yen (149.18), 0.6706 pounds (0.6730) and 1.5888 Swiss francs (1.5922). The dollar stood at 118.64 yen (119.02) and 1.2651 Swiss francs (1.2705). The On the London Bullion Market, gold prices fell to $590 per ounce, from $595.10 dollars late on Monday.
Meanwhile, European stock markets pulled back yesterday. The London FTSE 100 index of leading shares lost 1.03 percent to close at 6,108.60 points. In Paris the CAC 40 lost 1.10 percent to 5,302.99 and in Frankfurt the DAX dropped 1.15 percent to finish at 6,115.10. The DJ Euro Stoxx 50 index of leading euro zone shares was down 1.31 percent at 3,949.57.
In New York, US stocks fell yesterday. The Dow Jones Industrial Average was down 57.95 points, or 0.48 percent, at 11,922.65. The Standard & Poor’s 500 Index was down 7.91 points, or 0.58 percent, at 1,361.14. The NASDAQ Composite Index was down 23.64 points, or 1.00 percent, at 2,340.20.
Asian stocks closed lower yesterday. In Tokyo, the Nikkei-225 index dropped 81.17 points or 0.49 percent to 16,611.59.
In Kuala Lumpur, the composite index closed down 6.56 points at 977.23. In Manila, the composite index fell 40.72 points to 2,543.48 after. In Bombay, the 30-share Sensex index fell 44.35 points to 12,883.83.
World crude prices stabilized yesterday.
