Read More Here: "Aug. 15 (Bloomberg) -- The dollar may extend its gain versus the euro before a report forecast to show U.S. consumer confidence increased in August for a second month.
The euro dropped yesterday to a 5 1/2-month low against the dollar after crude oil fell and a report showed Europe's economy contracted for the first time since the 15-nation currency was introduced almost a decade ago. The pound declined to the lowest level against the dollar in 22 months on concern Britain's economy is falling into a recession.
``The tide has turned,'' said Matthew Strauss, a senior currency strategist in Toronto at RBC Capital Markets Inc., a unit of Canada's biggest bank by assets. ``The dollar's appreciation won't be as sharp going forward, but the trend will continue.''
Against the euro, the dollar traded at $1.4808 at 6:32 a.m. in Tokyo, after rising 0.6 percent yesterday and touching $1.4778, the strongest since Feb. 21. The U.S. currency was at 109.73 yen, following a 0.2 percent gain yesterday. The euro traded at 162.52 yen, after dropping 0.5 percent.
The European currency's decline accelerated yesterday after breaking $1.4840, a level at which traders had placed pre-set sell orders, according to Brian Dolan, chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey."
Friday, 15 August 2008
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