NEW YORK: The US dollar rebounded broadly yesterday from a slide sparked by the Federal Reserve’s move to buy up to $300 billion of government debt and US stocks slipped on the tepid debut of a Fed measure to revive lending.
Gold edged down as the dollar rebounded against the euro, prompting profit taking, and a two-day rally in commodity markets cooled as investors worried about demand.
Oil hovered above a four-month high at $52 a barrel, recouping earlier losses as the market sought a new base after news of a collision in the key Strait of Hormuz shipping lane near Iran. The euro was down 0.78 percent at $1.3556.
After 1 p.m., the Dow Jones Industrial Average fell 62.93 points, or 0.85 percent, at 7,337.87. The Standard & Poor’s 500 Index shed 10.27 points, or 1.31 percent, at 773.77. The Nasdaq Composite Index slipped 22.15 points, or 1.49 percent, at 1,461.33.
US light sweet crude oil pared gains to fall 39 cents to $51.22 per barrel.
Gold fell on profit-taking after its rally to a three-week high earlier in the session. Spot gold prices fell 75 cents to $957.85 an ounce.
Tokyo markets were closed for a public holiday.
