Euro climbs to new 11-week high against dollar

Published December 7th, 2000 - 02:00 GMT

The euro climbed to a new 11-week high against the US currency on Thursday of $0.8969, then dipped back to $0.8957. 

 

The fresh gains took the single European currency to within just 0.23 cents of its post-intervention high on September 22 of $0.8992. 

 

The euro staged a fresh rally against the dollar after a lacklustre performance overnight on Wall Street, where investors cashed in on the gains of the previous session, when the tech-rich Nasdaq had posted a record gain of more than 10 percent. 

 

The party on the US equity markets was spoiled by a bad Apple, after the US computer giant warned that it expected to post a loss in the three months to December because of a sharp sales slowdown. 

 

The euro also gained support from the latest US Federal Reserve beige book survey of economic developments, which showed renewed signs of a slowdown in the US economy in November. 

 

Comments by a senior offical at the Federal Reserve on Tuesday were also taken by dealers as further evidence that the US monetary authorities were steering towards a more neutral monetary policy. 

 

The vice chairman of the Federal Reserve's board of governors, Roger Ferguson, said that US gross domestic product growth "has stepped down from the unsustainable pace earlier this year.”— (AFP)  

 

© Agence France Presse 2000  

© 2000 Mena Report (www.menareport.com)

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