Dollar Backs Off Against Euro
Jan 19th, 2009 | By Doug Casey | Category: Financial NewsIn the currency market, the dollar slipped against the euro. Late Friday, the euro was trading at $1.3287 vs. $1.3149 on Thursday.
The buck was hurt by the latest bailout move from Washington.
As reported by MarketWatch.com, “the U.S. Treasury announced it would inject $20 billion into Bank of America Corp. (NYSE:BAC) It also will provide a backstop against losses on some $118 billion in assets as the banking giant struggles to digest its acquisition of troubled brokerage Merrill Lynch.”
Of the bailout, Kathy Lien, director of currency research at GFT, said that, “The additional funds provided to B. of A. is the only reason why the dollar is rallying against the Japanese yen, and why we are seeing a recovery in all of the higher-yielding pairs such as the euro/dollar and pound/dollar.”
Across the pond, the Irish government said it would nationalize Anglo Irish Bank, the country’s third-largest lender.
That led analysts at HBOS (NASDAQ:HBOS) to write that such relief “is positive for growth-sensitive currencies and broadly negative for the U.S. dollar.”
Back at home, the Labor Department said the consumer price index fell 0.7% in December, the third monthly decline in a row. Core CPI was unchanged. Both numbers were in line with economists’ expectations.
Source: Dollar Backs Off Against Euro
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