NewsMine — economy — united-states — 2005 — 2005-nov-dec — Viewing Item

US dollar strengthens against euro Original Source Link: (May no longer be active)    http://www.breitbart.com/news/2005/12/01/D8E7MJDO6.html http://www.breitbart.com/news/2005/12/01/D8E7MJDO6.html U.S. Dollar Strengthens Against Euro Dec 01 4:23 PM US/Eastern FRANKFURT, Germany - The U.S. dollar strengthened against the 12-nation euro on Thursday even as the European Central Bank raised interest rates for the first time in five years. The euro was at $1.1734 in late New York trading, down from $1.1791 late in New York on Wednesday. The British pound rose to $1.7310 from $1.7290 the night before, while the dollar bought 120.46 yen, a two- year high, up from 119.81 in New York. The dollar rose to 1.3176 Swiss francs from 1.3147, but fell to 1.1639 Canadian dollars from 1.1645. The ECB, in a widely expected but criticized move, raised its key rate a quarter point to 2.25 percent, the first change since June 2003, when it was lowered to 2 percent. Typically, raising interest rates makes a nation's currency more attractive by increasing the return on investments. Steven Saywell, chief currency strategist at Citigroup in London, said the decline in the euro was natural given that the market is pricing in several more rate increases even as Trichet has said the ECB will not embark on such a series. "The bottom line here is that Trichet made it clear this does not signal the start of aggressive rate hikes," he told Dow Jones Newswires. Most traders are also convinced the U.S. Federal Reserve will keep to its policy of measured rate increases, which so far has brought its key rate to 4 percent. Copyright 2005 The Associated Press.

Bush poll improves on economy gains { December 7 2005 } Ford general motors see sales slump General motors to cut 30k jobs by christmas 2005 Jobless claims rise sharply { October 2005 } Record plunge in gasoline drops consumer prices { December 15 2005 } Stocks down on fears of strong economy Stocks drop advances as oil tops 60 end of 2005 Stocks end lower rattled by housing drop prediction Stocks rise on optimism rate hikes will end US dollar strengthens against euro Files Listed: 10

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