The euro fell to a one-month low against the dollar after European Central Bank President Jean- Claude Trichet said the central bank must do everything possible to boost confidence, signaling he may cut interest rates further.
The Dollar Index rose for a fourth day before a U.S. report today that may show consumer confidence in the world’s largest economy increased for a second month, adding to evidence its recession may be easing. South Korea’s won headed for a sixth weekly advance, its longest winning streak in 18 months, on optimism record-low borrowing costs and government stimulus plans will help encourage economic growth.
“Economies around the world, particularly Europe, are still in a recession,” said Yuji Saito, head of the foreign- exchange group in Tokyo at Societe Generale SA, France’s third- largest bank. “ECB officials are increasing their rhetoric that they’ll cut rates. The bias for the euro is to the downside.” read more
The Dollar Index rose for a fourth day before a U.S. report today that may show consumer confidence in the world’s largest economy increased for a second month, adding to evidence its recession may be easing. South Korea’s won headed for a sixth weekly advance, its longest winning streak in 18 months, on optimism record-low borrowing costs and government stimulus plans will help encourage economic growth.
“Economies around the world, particularly Europe, are still in a recession,” said Yuji Saito, head of the foreign- exchange group in Tokyo at Societe Generale SA, France’s third- largest bank. “ECB officials are increasing their rhetoric that they’ll cut rates. The bias for the euro is to the downside.” read more
