NewsMine — economy — united-states — 2003 — 2003-sept-oct — Viewing Item

Dollar gains on euro { September 2 2003 } Original Source Link: (May no longer be active)    http://reuters.com/newsArticle.jhtml?type=businessNews&storyID=3371401 http://reuters.com/newsArticle.jhtml?type=businessNews&storyID=3371401 Dollar Storms Up Vs. Euro Tue September 2, 2003 06:04 AM ET By Charlotte Cooper LONDON (Reuters) - The dollar plowed one percent higher against the euro on Tuesday as the market jockeyed for position ahead of U.S. manufacturing data which was expected to show recovery still outpacing improvement in the euro zone. U.S. players are back in the market later after Monday's holiday and their return was expected to mark the end of the summer holiday season, with all eyes on the pace of U.S. recovery and the outlook for stock markets around the world. Regional reports have given upbeat readings on U.S. factory output and analysts expect the nationwide Institute of Supply Management (ISM) survey, due at 1400 GMT, to confirm this with a rise to 53.8 in August forecast, up from July's 51.8. "People are looking at the ISM survey and expecting it to show a healthy rebound. While yesterday's euro zone survey suggested a modest improvement, it was still fairly sluggish," said Ryan Shea, senior international economist at Bank One. "It's all part of a cyclical rotation into stocks and I would expect them to be a main beneficiary in the early stages of a pick-up." By 0945 GMT the dollar was holding close to the day's high of $1.0843 per euro, less than a cent below a four month peak set last week. It had also gained one percent to touch 1.4158 Swiss francs and was up against the British pound and Australian dollar. JAPAN'S POLICY The euro had been enjoying a mild recovery after falling to four month lows last week. Much of its trouble has come from a shift out of defensive euro zone government debt market trades set up earlier this year and into more risky stock markets as investor confidence in economic recovery has grown. Japanese stocks have been a beneficiary of this switch. The euro was down more than half a percent at 127.06 yen JPY= and closing in on a five-month low set last week. But the dollar was gaining traction against the yen after dipping to a three-month low on Friday. It was up almost half a percent at 117.08 yen. The yen surged on Friday after news Japanese authorities had not intervened to stem any export-damaging gains in their currency in August, contrary to market expectations. Since then the market has traded gingerly at the higher levels. Traders are wary the Bank of Japan could still step in after comments from Japanese ministers in the wake of U.S. Treasury Secretary John Snow's visit to Tokyo on Monday which indicated Japan's currency policy had not changed. The Nikkei Financial Daily reported Snow had pressed Japanese Finance Minister Masajuro Shiokawa to curb Japan's intervention. But Shiokawa said Snow had made no specific comment about the yen, which the Japanese authorities have held down with massive intervention this year. Japan's top financial diplomat, Zembei Mizoguchi, said on Tuesday Japan's economy was getting better but that did not warrant a further rise in the yen. "I suspect that Snow did tell the Japan side not to intervene too much," said Kota Kimura, assistant manager at Shinkin Central Bank in Tokyo. "I'm sure Japan will keep conducting yen-selling intervention but it will be difficult to do it as aggressively as in the past," he added. Snow traveled on to China on Tuesday. He is under pressure at home to urge Beijing to revalue the yuan, which is pegged to the dollar, to save jobs at hard-pressed U.S. factories. Shiokawa said the two had agreed China's yuan should move to a floating rate system but a spokesman for China's central bank said there would be no change in yuan policy just because Snow was visiting. In the euro zone, July data showed that unemployment was unchanged at 8.9 percent from June when it hit a 3-1/2 year high.

2 years in a row more in poverty Asian debt withdrawal threat to us deficit { September 7 2003 } Asian unpegging crucify us { October 3 2003 } Bush bid weaken dollar against asia { September 24 2003 } Bush cuts schools highways { September 10 2003 } Bush priorities under scrutiny Bush takes credit economic upturn { September 1 2003 } China brings us export resictions into trade debate Deficit not manageable { September 18 2003 } Deflation still worries federal reserve { September 17 2003 } Deflation will continue for years { September 10 2003 } Disappointed earnings bonds rally Dollar gains on euro { September 2 2003 } Dollar over valued { September 18 2003 } Dollar plunges 3 year low Dollar tumbles low against euro { October 8 2003 } Economy expands fastest since 1984 no jobs { October 31 2003 } Fed holds rates warns on deflation Firms dont buy rebound Firms still slashing jobs Foreign investors fear weak dollar { September 22 2003 } Gold hits 7 year high { September 25 2003 } Gold records as tumbling dollar { September 10 2003 } Government claims unemployment stabilizing { October 3 2003 } Grocery workers 3rd day strike san diego { October 14 2003 } Job loss like great depression Jobless claims lowest eight months { October 9 2003 } La transit strike may strand 500 thousand { October 14 2003 } Mass august layoffs { September 26 2003 } Monthly costs iraq approach vietnam Poor gained 1 3m in 2002 { September 3 2003 } States risk big losses bond funding pensions { October 12 2003 } Stocks at 14 month high { September 2 2003 } Stocks fall economy worries { September 30 2003 } Stocks lower after production data Stocks rebound hopes intact { October 1 2003 } Stocks rise on upbeat analyst reports { September 8 2003 } Stocks slip bonds rise Trade gap bring down dollar warns imf { September 19 2003 } Trade gap could bring down dollar { September 19 2003 } Uninsured increases 2 4 million last year { September 30 2003 } Us bonds face gloomier future as selling continues { September 7 2003 } Us closes last levis manufacturer { September 26 2003 } Us losing millions manufacturing jobs { September 4 2003 } Weak dollar raises stocks Files Listed: 45

Correction/submissions

CIA FOIA Archive

National Security Archives

This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information, go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purpose of your own that go beyond 'fair use', you must obtain permission from the copyright owner.