LONDON, 4 October 2007 — The dollar gained against the euro yesterday as traders assessed an economic survey that showed the US service sector was still expanding despite recent financial market turmoil.
In late European deals, the euro fell to 1.4136 dollars, from 1.4152 dollars in New York late on Tuesday. The euro had hit a record high 1.4283 dollars on Monday.
The US currency advanced to 116.75 yen, from 115.71 yen late in New York on Tuesday.
The Institute for Supply Management (ISM) non-manufacturing business index came in at 54.8 in September, data showed. This was down on August’s 55.8 and slightly weaker than expectations of 55.0, but a reading above 50 suggests expansion.
Analysts said the growth in the index’s employment sub-index, which rose to 52.7 from 47.9, suggested crucial jobs data on Friday might show a rebound in the labor market after a decline last month.
In late European trading yesterday, the euro was changing hands at 1.4136 dollars, against 1.4152 dollars late on Tuesday, 165.06 yen (163.79), 0.6943 pounds (0.6931) and 1.6663 Swiss francs (1.6630). The dollar stood at 116.75 yen (115.71) and 1.1788 Swiss francs (1.1749). On the London Bullion Market, the price of gold fell to $730.25 per ounce at the morning fixing from $735.75 late on Tuesday.
Meanwhile, the FTSE 100 index gained 0.54 percent to close at 6,535.20 points, while in Paris, the CAC 40 added 0.12 percent to finish at 5,806.18 and in Frankfurt the DAX rose 0.11 percent to 7,955.30. The Euro Stoxx 50 index of leading euro zone shares dropped 0.12 percent to 4,421.58 points.
In the US, the Dow Jones Industrial Average was down 0.11 percent at 14,031,70 in midsession and the tech-heavy NASDAQ down 0.05 percent to 2,745.84 The broad-market Standard & Poor’s 500 index was almost unchanged at 1,545.84 points.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index of leading shares gained 0.90 percent to 17,199.89, the highest closing level since July 31.
World oil prices advanced slightly yesterday. The price of London’s Brent North Sea crude for November delivery gained 10 cents to $77.48 per barrel. New York’s main futures contract, light sweet crude for delivery in November, climbed 20 cents to $80.25 per barrel.
