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NEW YORK: The euro jumped above 1.50 dollars on Wednesday, as upbeat US economic data and comments from the US Federal Reserve that the greenback had seen an "orderly" decline sparked more investor risk trades.
The weakening of the US unit sent the price of gold to another record high.
The European single currency rose to 1.5127 dollars at 2200 GMT from 1.4959 dollars late in New York on Tuesday. At one point, the euro hit a 15-month high of 1.5144 dollars.
Against the Japanese currency, the dollar dropped to 87.38 yen, approaching a 14-year low, from 88.54 yen late Tuesday.
Investors were also encouraged by economic reports from the United States, where the Federal Reserve has cut interest rates to nearly zero percent.
US government data showed US consumer spending jumped 0.7 percent in October, helped by a rebound in auto sales, and initial claims for jobless insurance benefits fell to their lowest since September last year.
Analysts said this brightened the economic outlook and encouraged investors to take on more risk. The euro is traditionally viewed as a riskier currency than the dollar and tends to rise on signs of economic strength.
Michael Malpede at Easy Forex said that the main catalyst for the dollar decline was confirmation in Tuesday's Federal Reserve minutes that the Fed plans to maintain a low level of interest rates for an extended period.
The minutes "also stated that the Fed sees the dollar depreciation as 'orderly,'" Malpede said.
"This statement is seen by some as a green light to sell the dollar as the Fed indicates that it has no plans to support the dollar."
Gold prices meanwhile soared to fresh records on the back of the weak dollar, which makes the precious metal cheaper for buyers using rival currencies, .
Gold struck a record high of 1,190.10 dollars an ounce on the London Bullion Market and 1,192 dollars in New York.
"If the dollar goes down then the price of gold will automatically rise," said BGC Partners analyst Howard Wheeldon.
"If the dollar is perceived by bullion markets as likely to continue falling then one can assume that the price of gold will rise in proportion."
Fears of a possible spike in inflation is also boosting gold, seen as a safe haven in times of rapidly rising prices.
Elsewhere, the British pound rose as keenly awaited economic data matched analysts' forecasts.
Britain remains stuck in a record recession, official data showed on Wednesday, but economists forecast a return to growth before the end of the year and ahead of a general election due in 2010.
The economy shrank by 0.3 percent in the third quarter, compared with output in the previous three months, the Office for National Statistics (ONS) said in a statement - higher than an initial estimate of a 0.4 percent contraction, given last month.
In late New York trade, the dollar dropped below parity to 0.9965 Swiss francs after 1.0097 on Tuesday.
The pound was at 1.6703 dollars from 1.6576. - AFP/de
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