LONDON, 9 August 2007 — The euro rose above 1.38 dollars yesterday, a day after sliding on prospects that US interest rates would remain unchanged for a while longer instead of heading lower, traders said.
In late European trade, the single currency rose to 1.3807 dollars, from 1.3736 dollars in New York late on Tuesday.
The dollar climbed to 119.72 yen, from 118.82 yen. The dollar gained against the yen after the Federal Reserve dampened expectations of a US interest rate cut and Japanese machinery orders fell sharply, dealers said. The euro was changing hands at 1.3807 dollars, against 1.3736 dollars late on Tuesday, 165.31 yen (163.24), 0.6781 pounds (0.6795) and 1.6496 Swiss francs (1.6447). The dollar stood at 119.72 yen (118.82) and 1.1946 Swiss francs (1.1972).
The pound was being traded at 2.0367 dollars (2.0211).
Meanwhile, European stock exchanges extended their gains yesterday, with London’s FTSE 100 index gaining 1.35 percent to close at 6,393.90 points.
In Paris the CAC 40 gained 2.29 percent to 5,749.29 and in Frankfurt the DAX took on 1.22 percent to finish at 7,605.94 points.
The Dow Jones Industrial Average was up 67.31 points (0.50 percent) at 13,621.60 and the NASDAQ composite gained 42.99 points (1.68 percent) to 2,613.66 at 1520 GMT.
Indian share prices surged 2.51 percent yesterday. The Mumbai stock exchange Sensex index rose 375.21 points to 15,307.98
World oil prices were mixed yesterday.
In London, the price of Brent North Sea crude for September delivery dropped by 29 cents to $71.51 per barrel.
New York’s main futures contract, light sweet crude for delivery in September, climbed 18 cents to $72.60 per barrel.
