NewsMine — economy — united-states — 2005 — 2005-jan-mar — Viewing Item

US dollar gains on euro Original Source Link: (May no longer be active)    http://www.forbes.com/feeds/ap/2005/02/04/ap1806576.html http://www.forbes.com/feeds/ap/2005/02/04/ap1806576.html Associated Press Update 2: U.S. Dollar Gains on Euro 02.04.2005, 01:20 PM The U.S. dollar gained on the euro Friday following the release of labor market data in Washington and a speech by U.S. Federal Reserve Chairman Alan Greenspan. At the end of the day in Europe the euro was trading at US$1.2883, down from US$1.2973 the day before. It was mixed against other currencies, with the British pound was quoted at US$1.8799, down from US$1.8817, while the dollar bought 103.87 yen, down from 104.44 yen the day before. News from Washington that U.S. employers added fewer jobs - 146,000 - than expected in January boosted the euro to US$1.3043 in early afternoon trading. But Greenspan's prediction in London, before the opening of the Group of Seven finance ministers meeting, that Washington might finally be wrestling its trade deficit under control drove the 12-nation currency back under the US$1.30 mark. Greenspan said a variety of factors, from a weaker dollar to tougher budget discipline in Congress may finally start to restrain the growth in the U.S. trade deficit, but cautioned that the global economy is essentially in uncharted waters given the unprecedented level of economic interaction between countries. The last time he spoke on this subject, the dollar plummeted after he said that foreign investors will eventually pare back their appetite for dollar-denominated assets at current foreign exchange and interest rate levels. The euro initially fell against the dollar after its 1999 debut and bottomed out at 82 U.S. cents in October 2000. But it rose steadily on concerns about burgeoning U.S. trade and budget deficits, and surged from US$1.20 in September to an all-time high of US$1.3667 at the end of December. European leaders have worried that the weak dollar will hurt the euro-zone's export-driven economic recovery, making European goods more expensive overseas or cutting into manufacturers' profits. It has the opposite effect on U.S. exports, and many believe that the Bush administration has been tacitly allowing the dollar to slip. Several attendees at a conference ahead of the G-7 meeting have highlighted the huge deficits.

2004 trade deficit hits all time high { February 10 2005 } Big earnings dont help markets Bush plans sharp cuts in HUD community efforts { January 14 2005 } Bush wants mexicans to do americans low pay jobs { March 23 2005 } California economic dependent on realestate boom { March 15 2005 } Companies are adjusting their prices for costs { March 25 2005 } Consumer confidence falls in march 2005 Dollar drops as korea backs away Dollar recoups losses on greenspan speech Dollar slides to two month low against euro Economy grows better than expected Fed considers rate hikes on inflation fears Fed raises rate a quarter early { February 2 2005 } January market drop worst since 1982 Jobless claims { January 2005 } [jpg] Stocks fall as fed discloses interest rate fears Stocks lower on trade deficit worries { March 11 2005 } Trade deficit rises risk to dollar { January 13 2005 } Treasuries fall as fed raises rates over inflation US dollar falls against euro US dollar gains on euro Files Listed: 21

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