|
|
 |
 |
 |
| Friday, 6 February 2004 |
 |
|
 |
Business | |
| News Business Features Editorial Security Politics World Letters Sports Obituaries
|
Dollar hit by renewed terrorism fears, bet on G7 inaction NEW YORK: The dollar stumbled after a poison scare on Capitol Hill sparked renewed fears of terrorism, while market players grew skeptical of an effort by the Group of Seven to prop up the greenback. The euro to 1.2544 dollars from 1.2422 late on Monday in New York. The dollar slipped to 105.46 yen from 105.56 on Monday. The US currency weakened on news that authorities had closed three US Senate office buildings after toxic ricin powder was found in a mail facility, an incident that raised fresh terrorism fears. The Senate finance committee meeting where US Treasury Secretary John Snow was due to testify was also postponed. With little on the data front Tuesday to detract from this development and so much scheduled for late in the week, trading turned cautious. "It has been a bit of an odd week but players don't want to take positions before the payrolls and the G7 meeting," said Jane Foley, currency strategist at Barclays Capital. The big event of the week comes over the weekend when the Group of Seven finance ministers meeting takes place. But ahead of that will be the monthly US labor market report and interest rate verdicts from the European Central Bank and the Bank of England. Many believe the G7 meeting will not yield anything new on the currency front. If this does happen, the dollar's slide will resume. Elsewhere, concerns about the US twin deficits - budget and current account - have also mounted in the wake of the White House's budget projections.President George W. Bush unveiled a budget plan Monday that estimates a record deficit of 521 billion dollars in the current fiscal year. He also asked Congress for 2.4 trillion dollars for the next fiscal year, starting in October. (AFP) |
|
News | Business | Features
| Editorial | Security
Produced by Lake House |
