LONDON, 10 October 2007 — The euro hit its lowest point against the dollar in more than two weeks yesterday, as dealers awaited publication of minutes from the US Federal Reserve’s latest rate-setting meet.
In early deals, the European single currency sank as low as $1.4015, which was last seen on Sept. 20. It later rose to $1.4048, compared with $1.4042 in New York late on Monday. However, the euro staged a modest rally against the dollar in late trading as investors awaited publication of minutes from the last Federal Reserve meeting for hints as to the direction of US monetary policy.
The single European currency was at $1.4090 against $1.4042 late Monday in New York.
The US currency eased to 117.22 yen from 117.40 yen late on Monday.
The European single currency has now dived by about 1.9 percent in value since striking a record high $1.4283 on Oct. 1.
China came under European pressure to allow its yuan currency to trade more freely in foreign exchange markets.
amid growing concerns that its huge surpluses are destabilizing the global economy.
Euro zone finance ministers from the 13 nations sharing the euro agreed late Monday to dispatch a delegation of powerbrokers to China to raise their concerns about exchange rates face-to-face with Chinese authorities.
The ministers, meeting in Luxembourg, singled out China in preparations for talks next week with colleagues from the Group of Seven richest countries with a call for Beijing to adjust the value of the yuan.
“In emerging countries with large and growing current account surpluses, especially China, it is desirable that their effective exchange rates move so that necessary adjustments occur,” the ministers said in an agreed statement.
China is regularly criticized for artificially keeping down the value of its currency to make its exports cheaper on international markets, which also has the effect of lifting the value of the euro.
In early European trading, the euro changed hands at $1.4048, against $1.4042 late on Monday, 164.66 yen (164.88), 0.6904 pounds (0.7120) and 1.6664 Swiss francs (1.6665).
The dollar stood at 117.22 yen (117.40) and 1.1864 Swiss francs (1.1867).
The pound was being traded at 2.0348 dollars (2.0353).
On the London Bullion Market, the price of gold eased to $730.90 per ounce at the morning fixing from $733.75 late on Monday.
