NEW YORK (Dow Jones)--The dollar is lower versus the euro and yen Friday as crude oil prices rebound and weak U.S. economic data lower expectations of a rate hike by the U.S. Federal Reserve next week.
The euro's strength was also bolstered by more hawkish comments from the European Central Bank as well as German data that showed producer price inflation rising to a two-year high. The single currency pushed to a 10-day high versus the dollar, $1.5625.
Against the yen, the dollar declined as stocks slumped on the rebound in oil prices. The dollar usually tracks equities and risk sentiment versus the yen.
"The U.S. dollar is poised to finish the week on a soft tone, as the greenback is threatening a downside breakout of the recent ranges," said analysts at Brown Brothers Harriman in New York.
The dollar had been stuck in a holding pattern for much of the week ahead of the Federal Open Market Committee meeting, which closes with an interest rate decision on Wednesday.
"The weak U.S. economic data, coupled with a realization that the Fed is not really going to raise rates next week or in August, and indication that the credit crisis is not fully behind us, are all taking their toll on the greenback," said BBH.
Early Friday in New York, the euro was at $1.5612 from $1.5498 late Thursday. The dollar was at Y107.49 from Y107.98. The euro was at Y167.81 from Y167.34 late Thursday, according to EBS. The U.K. pound was at $1.9768 from $1.9726, while the dollar was at CHF1.0353 from CHF1.0461 late Thursday.
Crude oil prices are back on the rise after declining a day earlier on news that China raised domestic gasoline and diesel prices by 17%-18%. Traders are next focused on the oil summit between the world's leading producers and consumers in Jeddah, Saudi Arabia this Sunday, which analysts have called the most crucial meeting the market has seen in years.
Meanwhile, in an article in the Financial Times, European Central Bank executive board member Lorenzo Bini Smaghi, warned that the recent rally in commodity prices is here to stay and that central banks may have to adjust their views to this.
Fears that these price rises are already feeding through into higher inflation were fueled by data from Germany showing that factory-gate prices rose 1.0% on the month and 6.0% on the year in May. Economists had expected lower rates of 0.9% on the month and 5.8% on the year.
-By Riva Froymovich, Dow Jones Newswires; 201 938-5063; riva.froymovich@dowjones.com
(Nicholas Hastings in London contributed to this report.)
Dollar Breaks Out Of Range, Lower Vs Rivals
Fri, Jun 20 2008, 13:00 GMT
http://www.djnewswires.com/eu
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--The dollar is lower versus the euro and yen Friday as crude oil prices rebound and weak U.S. economic data lower expectations of a rate hike by the U.S. Federal Reserve next week.
The euro's strength was also bolstered by more hawkish comments from the European Central Bank as well as German data that showed producer price inflation rising to a two-year high. The single currency pushed to a 10-day high versus the dollar, $1.5625.
Against the yen, the dollar declined as stocks slumped on the rebound in oil prices. The dollar usually tracks equities and risk sentiment versus the yen.
"The U.S. dollar is poised to finish the week on a soft tone, as the greenback is threatening a downside breakout of the recent ranges," said analysts at Brown Brothers Harriman in New York.
The dollar had been stuck in a holding pattern for much of the week ahead of the Federal Open Market Committee meeting, which closes with an interest rate decision on Wednesday.
"The weak U.S. economic data, coupled with a realization that the Fed is not really going to raise rates next week or in August, and indication that the credit crisis is not fully behind us, are all taking their toll on the greenback," said BBH.
Early Friday in New York, the euro was at $1.5612 from $1.5498 late Thursday. The dollar was at Y107.49 from Y107.98. The euro was at Y167.81 from Y167.34 late Thursday, according to EBS. The U.K. pound was at $1.9768 from $1.9726, while the dollar was at CHF1.0353 from CHF1.0461 late Thursday.
Crude oil prices are back on the rise after declining a day earlier on news that China raised domestic gasoline and diesel prices by 17%-18%. Traders are next focused on the oil summit between the world's leading producers and consumers in Jeddah, Saudi Arabia this Sunday, which analysts have called the most crucial meeting the market has seen in years.
Meanwhile, in an article in the Financial Times, European Central Bank executive board member Lorenzo Bini Smaghi, warned that the recent rally in commodity prices is here to stay and that central banks may have to adjust their views to this.
Fears that these price rises are already feeding through into higher inflation were fueled by data from Germany showing that factory-gate prices rose 1.0% on the month and 6.0% on the year in May. Economists had expected lower rates of 0.9% on the month and 5.8% on the year.
-By Riva Froymovich, Dow Jones Newswires; 201 938-5063; riva.froymovich@dowjones.com
(Nicholas Hastings in London contributed to this report.)
Di pos oleh Arbain Muhayat pada 22 December 2008